Factories across Asia faced a tough November as demand failed to pick up despite progress in U.S. trade deals. New reports show that major manufacturing hubs, including China, Japan, South Korea, and Taiwan, saw continued declines in factory activity. At the same time, some Southeast Asian nations reported growth, highlighting uneven conditions in the region. In China, the world’s largest manufacturing nation, factory activity returned to contraction. A private-sector purchasing managers’ index showed output dropping, following an official report that also recorded an eighth straight month of decline. Economists say the slowdown reflects weak demand and high inventory levels. “Container traffic at Chinese ports remained largely unchanged compared to October. Even when demand improved slightly, it had little effect on production. Output fell to a four-month low,” said Zichun Huang, China economist at Capital Economics. He added that while output prices edged up, they stayed low, signaling ongoing deflation pressures. China’s slowdown comes after a year of uncertainty caused by U.S. tariffs. Businesses have struggled to adjust to the new trade environment while hoping for more stable global demand. Although recent U.S. trade talks with China reduced tensions, the relief has not yet translated into stronger orders. Japan also reported weak factory activity. Its PMI indicated that new orders continued to fall, extending a downturn that now spans two-and-a-half years. Analysts cite a slow global business climate, tighter client budgets, and muted capital investment as reasons for the persistent decline. Supporting this, official data showed Japanese corporate spending on factories and equipment grew by 2.9% in the third quarter compared to the same period last year. However, the increase was slower than in previous months, highlighting cautious investment in production capacity. South Korea saw contraction in factory activity for the second month in November. While a finalized trade deal with the United States brought some clarity for manufacturers, overall output remained below expectations. Despite this, export data for South Korea showed growth for the sixth consecutive month, led by chip sales and stronger auto exports after the U.S. agreement. Taiwan’s manufacturing sector also faced continued declines, though the pace slowed. The PMI data indicated that while production remains under pressure, the situation may be stabilizing. In contrast, emerging markets in Asia reported strong factory activity. Indonesia and Vietnam experienced brisk growth, driven by domestic demand and exports. Malaysia returned to growth after previous months of contraction, signaling a more positive trend among some smaller economies. Overall, the Asia Manufacturing Slowdown Report highlights the uneven recovery across the continent. While some economies face persistent contraction, others are adapting better to changes in trade patterns and global demand. Economists warn that uncertainty in U.S. trade policy remains a major factor affecting manufacturing activity across the region. Companies in exporting nations are carefully monitoring international trade developments. While deals with the United States and other countries have offered some confidence, businesses continue to face challenges in production planning, supply chain management, and cost pressures. The weak factory activity comes amid broader concerns about global economic growth. Rising interest rates, slower consumption, and cautious investment in technology and equipment all contribute to the slowdown. Policymakers in several Asian countries are exploring measures to support manufacturing and stimulate demand, including incentives for exporters and support for domestic industries. As the year ends, Asia’s manufacturing outlook remains mixed. Large economies like China, Japan, and South Korea continue to face declines, while emerging markets show resilience. The Asia Manufacturing Slowdown Report underscores the ongoing impact of trade uncertainty and highlights the need for careful planning to navigate global economic challenges.