Asian Factory Output Expands on Stockpiling and AI Demand
Manufacturing activity across Asia grew in May as companies built inventory buffers to mitigate supply chain disruptions from the conflict in the Middle East. South Korea and Taiwan saw particularly strong expansion driven by record semiconductor sales and surging global investment in artificial intelligence.
China and other Asian manufacturing hubs expanded factory output in May as firms stockpiled goods to hedge against Middle East conflict risks. Private surveys released on Monday morning show a regional push to build inventory buffers amid disruptions to global trade routes. This defensive positioning reflects warnings from heads of the International Energy Agency, International Monetary Fund, World Bank and World Trade Organization that the war was straining global energy supplies and hitting vulnerable economies hardest.
