Asian factory growth slows amid rising Iran war costs
Asian factory growth slowed in March as the Iran war raised fuel costs and strained supply chains. Most regional PMIs fell while South Korea remained an outlier.
Manufacturing activity across major Asian economies experienced a slowdown in March as rising fuel costs and geopolitical instability stemming from the conflict in Iran began to impact the region. Policymakers face significant hurdles as the region imports approximately 80% of the oil passing through the Strait of Hormuz, leaving many nations highly susceptible to energy price shocks.
In China, the manufacturing sector continued to expand for a fourth consecutive month, though it faced mounting inflationary pressures and supply chain disruptions. The RatingDog China General Manufacturing Purchasing Managers Index (PMI) dropped to 50.8 in March from 52.1 in February, falling short of the 51.6 forecast by analysts.
