Finally after what seemed an eternity, Asia’s manufacturing industry is on the rise (I hope I’m not speaking too soon).
Statistics gathered by (Markit, 2016), (National Bureau of Statistics, 2016) and (FactSet, 2016) have suggested that manufacturing in Japan, Taiwan, China and South Korea is showing signs of progression.
In relation to China, the PMI of manufacturing has exceeded the market expectations, increasing from 49.9 to 50.4 in July and August respectively, a period analysts expected to remain unchanged.
The 50.4 reading in China is the best the country has seen since October 2014. The results are anticipated to have a knock on effect for a number of other statistics with Zhou Hao, a senior
emerging-market economist in China anticipating that it will provide added strength the Chinese Yuan, the result has also caused Commerzbank to alter its GDP predictions from 6.3% to 6.7%.Similar reactions to the statistics have been seen in both Japan and Taiwan.
South Korea has suffered more than most this year, with a majority seeing positive first half results in export volumes unlike South Korea, but finally they are also seeing positive statistics.
The fact South Korea are seeing positive results is perhaps more surprising than that of the other Asia-Pacific countries, considering the fact they are suffering from a rapidly declining shipping industries
(One of the main economic sources).However, as we are a manufacturing based company in China, it is nice to finally see some positive trends for the industry!