Asian factories see slowing demand in August
According to various surveys, the ugly trade war between the US & China has led to a decline in Asian factory activity. South Korea, Japan and Taiwan saw their factory activity shrink.Surprisingly, China’s economy did not succumb to the mounting pressures of the war and its factory activity unexpectedly expanded in August as output edged up. However, orders remained weak and business confidence faltered in China too. “The broader picture for Asian exports remains very weak because of the impact of the U.S.-China trade war, which is continuing to escalate,” Rajiv Biswas, Asia Pacific chief economist at IHS Markit told reporters. “Eventually the service sector will be dragged down by the manufacturing sector,” felt Michael Every, senior Asia-Pacific strategist at Rabobank.