Factory Activity in Asia Weakens Amid Rising Costs and Slowing Global Demand

The eurozone's manufacturing sector showed improvement in August, but Germany remained a negative outlier. Factory activity in Asia weakened due to rising costs and slowing global demand. China's unexpected rebound provided some hope for export-reliant economies. Central banks are considering the impact of weak global demand on their economies before making further interest rate increases. Germany and France's manufacturing sectors are struggling, while Britain's factories had their weakest month since the start of the pandemic. Asia's economies, including Japan and South Korea, are experiencing contractions due to wage pressures and weak exports. The International Monetary Fund predicts that emerging Asia's economic growth will accelerate this year.