International Business News – A private sector survey released Monday showed that Asian factory activity expanded in January, boosted by strong global demand and rising export orders. This provides some relief to policymakers that the impact of U.S. tariff increases has passed for now.
The survey showed that manufacturing activity in Japan and South Korea reached multi-year highs as major markets like the United States maintained growth momentum, boosting the outlook for Asia’s export powerhouses.
One survey showed that Chinese factory activity accelerated in January as export orders rebounded, contrasting with earlier official data indicating weak factory activity.
The China Manufacturing Purchasing Managers’ Index (PMI) rose from 50.1 in December to 50.3, crossing the boom-bust line of 50 and reaching its highest level since October.
This optimistic survey result may reflect strong growth momentum in Chinese exports, offsetting weak domestic consumption and helping the world’s second-largest economy achieve 5.0% growth last year.
Japan’s PMI in January rose from 50.0 in December to 51.5, the highest since August 2022, mainly driven by strong demand from major markets such as the United States and Taiwan.
“Japan’s manufacturing sector returned to growth trajectory in early 2026, with companies signaling the strongest expansion in output and new orders in nearly four years,” said a deputy director of economics.
South Korea’s manufacturing PMI in January also rose from 50.1 in December to 51.2, the highest since August 2024.
The International Monetary Fund raised its global economic growth forecast for 2026 last month, citing easing concerns over U.S. tariff impacts and the ongoing artificial intelligence investment boom driving asset wealth growth and boosting expectations for productivity gains.
The improved global demand outlook drove factory activity expansion across Asia. Taiwan’s PMI rose from 50.9 in December to 51.7 in January, while Indonesia’s PMI increased from 51.2 to 52.6.
The survey showed that factory activity in Malaysia, the Philippines, and Vietnam also expanded in January.
