Factories in Asia reported slow demand in July as both domestic and global orders decreased at the beginning of the third quarter, highlighting the ongoing weak momentum in the global economy.

Out of the nine private surveys released on Tuesday, six indicated a contraction in manufacturing activity for major producers in Asia. China’s reading unexpectedly fell into contraction for the first time in three months.

Alongside China, Japan, South Korea, Malaysia, Taiwan, and Vietnam also showed contraction in manufacturing activity, while India, Indonesia, and the Philippines indicated expansion.

“Manufacturing PMIs remained in contractionary territory across most of Emerging Asia last month, and the underlying data point to further weakness ahead,” wrote Shivaan Tandon, an economist with Capital Economics.

“Falling new orders, bleak employment prospects, and high inventory levels suggest subdued factory activity in the coming months. The data confirm our view that external demand will hinder growth in the second half of 2023,” Tandon added.

Weak demand has also contributed to reduced production costs, which may help alleviate inflationary pressures and potentially lead to looser monetary policy in some emerging Asian economies.

According to S&P, Taiwan’s manufacturing purchasing managers’ index (PMI) reading was particularly alarming, dropping to 44.1 in July from 44.8 in June. This decline was the sharpest recorded since November 2022.

PMI manufacturing surveys serve as leading indicators of economic activity. A reading above 50 suggests expansion, while a reading below 50 indicates contraction.

In Taiwan, a leading global producer of semiconductors, new export business contracted at the fastest rate in six months, according to S&P’s July PMI release. Surveyed firms pointed to reduced demand in various markets, including Europe, Japan, mainland China, and the United States.

Annabel Fiddes, S&P Global Market Intelligence’s associate director for economics, stated, “Declines in output, new orders, and export sales gathered pace in Taiwan, with firms citing weaker global economic conditions and high inventory levels at clients.”

Similar drops in new orders were observed in other East Asian economies, with Vietnamese output, new orders, and employment experiencing their weakest contraction since March.

In China, the Caixin/S&P PMI reading fell to 49.2 in July from 50.5 the previous month, marking the first contraction in three months and below the median forecast of 50.3 in a Reuters poll.

This decline was driven by a decrease in new businesses received by Chinese producers, along with a solid contraction in new export business, the fastest since September of the previous year, according to the survey.

The weak demand for Asia’s factory output has helped reduce production costs.

In Japan, manufacturers reported a continued decline in input price inflation at the start of the third quarter, with the slowest increase in operating expenses in close to two-and-a-half years.

South Korea’s input prices fell at the fastest pace since July 2017, while Taiwan experienced the second-sharpest decline since May 2020. Taiwanese manufacturers cited competitive pricing strategies, price negotiations with clients, and improved material availability as factors contributing to cost savings.

“Sub-indices for both input and output prices stood near multi-year lows and point to further falls in inflation in the near-term,” said Capital Economics’ Tandon, referring to emerging East Asian economies.

Official government data revealed that inflation in South Korea slowed to 2.7% in June from a peak of 6.3% about a year ago, while inflation in Taiwan stood at almost 1.8% in June from its peak around the same time.

“The latest data support our view that price pressures are likely to soften steadily in the near-term, and with growth set to struggle and remain below-trend, central banks in the region are likely to start cutting interest rates soon,” Tandon added.

Factories in Asia reported slow demand in July as both domestic and global orders decreased at the beginning of the third quarter, highlighting the ongoing weak momentum in the global economy.

Out of the nine private surveys released on Tuesday, six indicated a contraction in manufacturing activity for major producers in Asia. China’s reading unexpectedly fell into contraction for the first time in three months.

Alongside China, Japan, South Korea, Malaysia, Taiwan, and Vietnam also showed contraction in manufacturing activity, while India, Indonesia, and the Philippines indicated expansion.

“Manufacturing PMIs remained in contractionary territory across most of Emerging Asia last month, and the underlying data point to further weakness ahead,” wrote Shivaan Tandon, an economist with Capital Economics.

“Falling new orders, bleak employment prospects, and high inventory levels suggest subdued factory activity in the coming months. The data confirm our view that external demand will hinder growth in the second half of 2023,” Tandon added.

Weak demand has also contributed to reduced production costs, which may help alleviate inflationary pressures and potentially lead to looser monetary policy in some emerging Asian economies.

According to S&P, Taiwan’s manufacturing purchasing managers’ index (PMI) reading was particularly alarming, dropping to 44.1 in July from 44.8 in June. This decline was the sharpest recorded since November 2022.

PMI manufacturing surveys serve as leading indicators of economic activity. A reading above 50 suggests expansion, while a reading below 50 indicates contraction.

In Taiwan, a leading global producer of semiconductors, new export business contracted at the fastest rate in six months, according to S&P’s July PMI release. Surveyed firms pointed to reduced demand in various markets, including Europe, Japan, mainland China, and the United States.

Annabel Fiddes, S&P Global Market Intelligence’s associate director for economics, stated, “Declines in output, new orders, and export sales gathered pace in Taiwan, with firms citing weaker global economic conditions and high inventory levels at clients.”

Similar drops in new orders were observed in other East Asian economies, with Vietnamese output, new orders, and employment experiencing their weakest contraction since March.

In China, the Caixin/S&P PMI reading fell to 49.2 in July from 50.5 the previous month, marking the first contraction in three months and below the median forecast of 50.3 in a Reuters poll.

This decline was driven by a decrease in new businesses received by Chinese producers, along with a solid contraction in new export business, the fastest since September of the previous year, according to the survey.

The weak demand for Asia’s factory output has helped reduce production costs.

In Japan, manufacturers reported a continued decline in input price inflation at the start of the third quarter, with the slowest increase in operating expenses in close to two-and-a-half years.

South Korea’s input prices fell at the fastest pace since July 2017, while Taiwan experienced the second-sharpest decline since May 2020. Taiwanese manufacturers cited competitive pricing strategies, price negotiations with clients, and improved material availability as factors contributing to cost savings.

“Sub-indices for both input and output prices stood near multi-year lows and point to further falls in inflation in the near-term,” said Capital Economics’ Tandon, referring to emerging East Asian economies.

Official government data revealed that inflation in South Korea slowed to 2.7% in June from a peak of 6.3% about a year ago, while inflation in Taiwan stood at almost 1.8% in June from its peak around the same time.

“The latest data support our view that price pressures are likely to soften steadily in the near-term, and with growth set to struggle and remain below-trend, central banks in the region are likely to start cutting interest rates soon,” Tandon added.

Factories in Asia reported slow demand in July as both domestic and global orders decreased at the beginning of the third quarter, highlighting the ongoing weak momentum in the global economy.

Out of the nine private surveys released on Tuesday, six indicated a contraction in manufacturing activity for major producers in Asia. China’s reading unexpectedly fell into contraction for the first time in three months.

Alongside China, Japan, South Korea, Malaysia, Taiwan, and Vietnam also showed contraction in manufacturing activity, while India, Indonesia, and the Philippines indicated expansion.

“Manufacturing PMIs remained in contractionary territory across most of Emerging Asia last month, and the underlying data point to further weakness ahead,” wrote Shivaan Tandon, an economist with Capital Economics.

“Falling new orders, bleak employment prospects, and high inventory levels suggest subdued factory activity in the coming months. The data confirm our view that external demand will hinder growth in the second half of 2023,” Tandon added.

Weak demand has also contributed to reduced production costs, which may help alleviate inflationary pressures and potentially lead to looser monetary policy in some emerging Asian economies.

According to S&P, Taiwan’s manufacturing purchasing managers’ index (PMI) reading was particularly alarming, dropping to 44.1 in July from 44.8 in June. This decline was the sharpest recorded since November 2022.

PMI manufacturing surveys serve as leading indicators of economic activity. A reading above 50 suggests expansion, while a reading below 50 indicates contraction.

In Taiwan, a leading global producer of semiconductors, new export business contracted at the fastest rate in six months, according to S&P’s July PMI release. Surveyed firms pointed to reduced demand in various markets, including Europe, Japan, mainland China, and the United States.

Annabel Fiddes, S&P Global Market Intelligence’s associate director for economics, stated, “Declines in output, new orders, and export sales gathered pace in Taiwan, with firms citing weaker global economic conditions and high inventory levels at clients.”

Similar drops in new orders were observed in other East Asian economies, with Vietnamese output, new orders, and employment experiencing their weakest contraction since March.

In China, the Caixin/S&P PMI reading fell to 49.2 in July from 50.5 the previous month, marking the first contraction in three months and below the median forecast of 50.3 in a Reuters poll.

This decline was driven by a decrease in new businesses received by Chinese producers, along with a solid contraction in new export business, the fastest since September of the previous year, according to the survey.

The weak demand for Asia’s factory output has helped reduce production costs.

In Japan, manufacturers reported a continued decline in input price inflation at the start of the third quarter, with the slowest increase in operating expenses in close to two-and-a-half years.

South Korea’s input prices fell at the fastest pace since July 2017, while Taiwan experienced the second-sharpest decline since May 2020. Taiwanese manufacturers cited competitive pricing strategies, price negotiations with clients, and improved material availability as factors contributing to cost savings.

“Sub-indices for both input and output prices stood near multi-year lows and point to further falls in inflation in the near-term,” said Capital Economics’ Tandon, referring to emerging East Asian economies.

Official government data revealed that inflation in South Korea slowed to 2.7% in June from a peak of 6.3% about a year ago, while inflation in Taiwan stood at almost 1.8% in June from its peak around the same time.

“The latest data support our view that price pressures are likely to soften steadily in the near-term, and with growth set to struggle and remain below-trend, central banks in the region are likely to start cutting interest rates soon,” Tandon added.

Factories in Asia reported slow demand in July as both domestic and global orders decreased at the beginning of the third quarter, highlighting the ongoing weak momentum in the global economy.

Out of the nine private surveys released on Tuesday, six indicated a contraction in manufacturing activity for major producers in Asia. China’s reading unexpectedly fell into contraction for the first time in three months.

Alongside China, Japan, South Korea, Malaysia, Taiwan, and Vietnam also showed contraction in manufacturing activity, while India, Indonesia, and the Philippines indicated expansion.

“Manufacturing PMIs remained in contractionary territory across most of Emerging Asia last month, and the underlying data point to further weakness ahead,” wrote Shivaan Tandon, an economist with Capital Economics.

“Falling new orders, bleak employment prospects, and high inventory levels suggest subdued factory activity in the coming months. The data confirm our view that external demand will hinder growth in the second half of 2023,” Tandon added.

Weak demand has also contributed to reduced production costs, which may help alleviate inflationary pressures and potentially lead to looser monetary policy in some emerging Asian economies.

According to S&P, Taiwan’s manufacturing purchasing managers’ index (PMI) reading was particularly alarming, dropping to 44.1 in July from 44.8 in June. This decline was the sharpest recorded since November 2022.

PMI manufacturing surveys serve as leading indicators of economic activity. A reading above 50 suggests expansion, while a reading below 50 indicates contraction.

In Taiwan, a leading global producer of semiconductors, new export business contracted at the fastest rate in six months, according to S&P’s July PMI release. Surveyed firms pointed to reduced demand in various markets, including Europe, Japan, mainland China, and the United States.

Annabel Fiddes, S&P Global Market Intelligence’s associate director for economics, stated, “Declines in output, new orders, and export sales gathered pace in Taiwan, with firms citing weaker global economic conditions and high inventory levels at clients.”

Similar drops in new orders were observed in other East Asian economies, with Vietnamese output, new orders, and employment experiencing their weakest contraction since March.

In China, the Caixin/S&P PMI reading fell to 49.2 in July from 50.5 the previous month, marking the first contraction in three months and below the median forecast of 50.3 in a Reuters poll.

This decline was driven by a decrease in new businesses received by Chinese producers, along with a solid contraction in new export business, the fastest since September of the previous year, according to the survey.

The weak demand for Asia’s factory output has helped reduce production costs.

In Japan, manufacturers reported a continued decline in input price inflation at the start of the third quarter, with the slowest increase in operating expenses in close to two-and-a-half years.

South Korea’s input prices fell at the fastest pace since July 2017, while Taiwan experienced the second-sharpest decline since May 2020. Taiwanese manufacturers cited competitive pricing strategies, price negotiations with clients, and improved material availability as factors contributing to cost savings.

“Sub-indices for both input and output prices stood near multi-year lows and point to further falls in inflation in the near-term,” said Capital Economics’ Tandon, referring to emerging East Asian economies.

Official government data revealed that inflation in South Korea slowed to 2.7% in June from a peak of 6.3% about a year ago, while inflation in Taiwan stood at almost 1.8% in June from its peak around the same time.

“The latest data support our view that price pressures are likely to soften steadily in the near-term, and with growth set to struggle and remain below-trend, central banks in the region are likely to start cutting interest rates soon,” Tandon added.

Factories in Asia reported slow demand in July as both domestic and global orders decreased at the beginning of the third quarter, highlighting the ongoing weak momentum in the global economy.

Out of the nine private surveys released on Tuesday, six indicated a contraction in manufacturing activity for major producers in Asia. China’s reading unexpectedly fell into contraction for the first time in three months.

Alongside China, Japan, South Korea, Malaysia, Taiwan, and Vietnam also showed contraction in manufacturing activity, while India, Indonesia, and the Philippines indicated expansion.

“Manufacturing PMIs remained in contractionary territory across most of Emerging Asia last month, and the underlying data point to further weakness ahead,” wrote Shivaan Tandon, an economist with Capital Economics.

“Falling new orders, bleak employment prospects, and high inventory levels suggest subdued factory activity in the coming months. The data confirm our view that external demand will hinder growth in the second half of 2023,” Tandon added.

Weak demand has also contributed to reduced production costs, which may help alleviate inflationary pressures and potentially lead to looser monetary policy in some emerging Asian economies.

According to S&P, Taiwan’s manufacturing purchasing managers’ index (PMI) reading was particularly alarming, dropping to 44.1 in July from 44.8 in June. This decline was the sharpest recorded since November 2022.

PMI manufacturing surveys serve as leading indicators of economic activity. A reading above 50 suggests expansion, while a reading below 50 indicates contraction.

In Taiwan, a leading global producer of semiconductors, new export business contracted at the fastest rate in six months, according to S&P’s July PMI release. Surveyed firms pointed to reduced demand in various markets, including Europe, Japan, mainland China, and the United States.

Annabel Fiddes, S&P Global Market Intelligence’s associate director for economics, stated, “Declines in output, new orders, and export sales gathered pace in Taiwan, with firms citing weaker global economic conditions and high inventory levels at clients.”

Similar drops in new orders were observed in other East Asian economies, with Vietnamese output, new orders, and employment experiencing their weakest contraction since March.

In China, the Caixin/S&P PMI reading fell to 49.2 in July from 50.5 the previous month, marking the first contraction in three months and below the median forecast of 50.3 in a Reuters poll.

This decline was driven by a decrease in new businesses received by Chinese producers, along with a solid contraction in new export business, the fastest since September of the previous year, according to the survey.

The weak demand for Asia’s factory output has helped reduce production costs.

In Japan, manufacturers reported a continued decline in input price inflation at the start of the third quarter, with the slowest increase in operating expenses in close to two-and-a-half years.

South Korea’s input prices fell at the fastest pace since July 2017, while Taiwan experienced the second-sharpest decline since May 2020. Taiwanese manufacturers cited competitive pricing strategies, price negotiations with clients, and improved material availability as factors contributing to cost savings.

“Sub-indices for both input and output prices stood near multi-year lows and point to further falls in inflation in the near-term,” said Capital Economics’ Tandon, referring to emerging East Asian economies.

Official government data revealed that inflation in South Korea slowed to 2.7% in June from a peak of 6.3% about a year ago, while inflation in Taiwan stood at almost 1.8% in June from its peak around the same time.

“The latest data support our view that price pressures are likely to soften steadily in the near-term, and with growth set to struggle and remain below-trend, central banks in the region are likely to start cutting interest rates soon,” Tandon added.

Factories in Asia reported slow demand in July as both domestic and global orders decreased at the beginning of the third quarter, highlighting the ongoing weak momentum in the global economy.

Out of the nine private surveys released on Tuesday, six indicated a contraction in manufacturing activity for major producers in Asia. China’s reading unexpectedly fell into contraction for the first time in three months.

Alongside China, Japan, South Korea, Malaysia, Taiwan, and Vietnam also showed contraction in manufacturing activity, while India, Indonesia, and the Philippines indicated expansion.

“Manufacturing PMIs remained in contractionary territory across most of Emerging Asia last month, and the underlying data point to further weakness ahead,” wrote Shivaan Tandon, an economist with Capital Economics.

“Falling new orders, bleak employment prospects, and high inventory levels suggest subdued factory activity in the coming months. The data confirm our view that external demand will hinder growth in the second half of 2023,” Tandon added.

Weak demand has also contributed to reduced production costs, which may help alleviate inflationary pressures and potentially lead to looser monetary policy in some emerging Asian economies.

According to S&P, Taiwan’s manufacturing purchasing managers’ index (PMI) reading was particularly alarming, dropping to 44.1 in July from 44.8 in June. This decline was the sharpest recorded since November 2022.

PMI manufacturing surveys serve as leading indicators of economic activity. A reading above 50 suggests expansion, while a reading below 50 indicates contraction.

In Taiwan, a leading global producer of semiconductors, new export business contracted at the fastest rate in six months, according to S&P’s July PMI release. Surveyed firms pointed to reduced demand in various markets, including Europe, Japan, mainland China, and the United States.

Annabel Fiddes, S&P Global Market Intelligence’s associate director for economics, stated, “Declines in output, new orders, and export sales gathered pace in Taiwan, with firms citing weaker global economic conditions and high inventory levels at clients.”

Similar drops in new orders were observed in other East Asian economies, with Vietnamese output, new orders, and employment experiencing their weakest contraction since March.

In China, the Caixin/S&P PMI reading fell to 49.2 in July from 50.5 the previous month, marking the first contraction in three months and below the median forecast of 50.3 in a Reuters poll.

This decline was driven by a decrease in new businesses received by Chinese producers, along with a solid contraction in new export business, the fastest since September of the previous year, according to the survey.

The weak demand for Asia’s factory output has helped reduce production costs.

In Japan, manufacturers reported a continued decline in input price inflation at the start of the third quarter, with the slowest increase in operating expenses in close to two-and-a-half years.

South Korea’s input prices fell at the fastest pace since July 2017, while Taiwan experienced the second-sharpest decline since May 2020. Taiwanese manufacturers cited competitive pricing strategies, price negotiations with clients, and improved material availability as factors contributing to cost savings.

“Sub-indices for both input and output prices stood near multi-year lows and point to further falls in inflation in the near-term,” said Capital Economics’ Tandon, referring to emerging East Asian economies.

Official government data revealed that inflation in South Korea slowed to 2.7% in June from a peak of 6.3% about a year ago, while inflation in Taiwan stood at almost 1.8% in June from its peak around the same time.

“The latest data support our view that price pressures are likely to soften steadily in the near-term, and with growth set to struggle and remain below-trend, central banks in the region are likely to start cutting interest rates soon,” Tandon added.

Factories in Asia reported slow demand in July as both domestic and global orders decreased at the beginning of the third quarter, highlighting the ongoing weak momentum in the global economy.

Out of the nine private surveys released on Tuesday, six indicated a contraction in manufacturing activity for major producers in Asia. China’s reading unexpectedly fell into contraction for the first time in three months.

Alongside China, Japan, South Korea, Malaysia, Taiwan, and Vietnam also showed contraction in manufacturing activity, while India, Indonesia, and the Philippines indicated expansion.

“Manufacturing PMIs remained in contractionary territory across most of Emerging Asia last month, and the underlying data point to further weakness ahead,” wrote Shivaan Tandon, an economist with Capital Economics.

“Falling new orders, bleak employment prospects, and high inventory levels suggest subdued factory activity in the coming months. The data confirm our view that external demand will hinder growth in the second half of 2023,” Tandon added.

Weak demand has also contributed to reduced production costs, which may help alleviate inflationary pressures and potentially lead to looser monetary policy in some emerging Asian economies.

According to S&P, Taiwan’s manufacturing purchasing managers’ index (PMI) reading was particularly alarming, dropping to 44.1 in July from 44.8 in June. This decline was the sharpest recorded since November 2022.

PMI manufacturing surveys serve as leading indicators of economic activity. A reading above 50 suggests expansion, while a reading below 50 indicates contraction.

In Taiwan, a leading global producer of semiconductors, new export business contracted at the fastest rate in six months, according to S&P’s July PMI release. Surveyed firms pointed to reduced demand in various markets, including Europe, Japan, mainland China, and the United States.

Annabel Fiddes, S&P Global Market Intelligence’s associate director for economics, stated, “Declines in output, new orders, and export sales gathered pace in Taiwan, with firms citing weaker global economic conditions and high inventory levels at clients.”

Similar drops in new orders were observed in other East Asian economies, with Vietnamese output, new orders, and employment experiencing their weakest contraction since March.

In China, the Caixin/S&P PMI reading fell to 49.2 in July from 50.5 the previous month, marking the first contraction in three months and below the median forecast of 50.3 in a Reuters poll.

This decline was driven by a decrease in new businesses received by Chinese producers, along with a solid contraction in new export business, the fastest since September of the previous year, according to the survey.

The weak demand for Asia’s factory output has helped reduce production costs.

In Japan, manufacturers reported a continued decline in input price inflation at the start of the third quarter, with the slowest increase in operating expenses in close to two-and-a-half years.

South Korea’s input prices fell at the fastest pace since July 2017, while Taiwan experienced the second-sharpest decline since May 2020. Taiwanese manufacturers cited competitive pricing strategies, price negotiations with clients, and improved material availability as factors contributing to cost savings.

“Sub-indices for both input and output prices stood near multi-year lows and point to further falls in inflation in the near-term,” said Capital Economics’ Tandon, referring to emerging East Asian economies.

Official government data revealed that inflation in South Korea slowed to 2.7% in June from a peak of 6.3% about a year ago, while inflation in Taiwan stood at almost 1.8% in June from its peak around the same time.

“The latest data support our view that price pressures are likely to soften steadily in the near-term, and with growth set to struggle and remain below-trend, central banks in the region are likely to start cutting interest rates soon,” Tandon added.

Factories in Asia reported slow demand in July as both domestic and global orders decreased at the beginning of the third quarter, highlighting the ongoing weak momentum in the global economy.

Out of the nine private surveys released on Tuesday, six indicated a contraction in manufacturing activity for major producers in Asia. China’s reading unexpectedly fell into contraction for the first time in three months.

Alongside China, Japan, South Korea, Malaysia, Taiwan, and Vietnam also showed contraction in manufacturing activity, while India, Indonesia, and the Philippines indicated expansion.

“Manufacturing PMIs remained in contractionary territory across most of Emerging Asia last month, and the underlying data point to further weakness ahead,” wrote Shivaan Tandon, an economist with Capital Economics.

“Falling new orders, bleak employment prospects, and high inventory levels suggest subdued factory activity in the coming months. The data confirm our view that external demand will hinder growth in the second half of 2023,” Tandon added.

Weak demand has also contributed to reduced production costs, which may help alleviate inflationary pressures and potentially lead to looser monetary policy in some emerging Asian economies.

According to S&P, Taiwan’s manufacturing purchasing managers’ index (PMI) reading was particularly alarming, dropping to 44.1 in July from 44.8 in June. This decline was the sharpest recorded since November 2022.

PMI manufacturing surveys serve as leading indicators of economic activity. A reading above 50 suggests expansion, while a reading below 50 indicates contraction.

In Taiwan, a leading global producer of semiconductors, new export business contracted at the fastest rate in six months, according to S&P’s July PMI release. Surveyed firms pointed to reduced demand in various markets, including Europe, Japan, mainland China, and the United States.

Annabel Fiddes, S&P Global Market Intelligence’s associate director for economics, stated, “Declines in output, new orders, and export sales gathered pace in Taiwan, with firms citing weaker global economic conditions and high inventory levels at clients.”

Similar drops in new orders were observed in other East Asian economies, with Vietnamese output, new orders, and employment experiencing their weakest contraction since March.

In China, the Caixin/S&P PMI reading fell to 49.2 in July from 50.5 the previous month, marking the first contraction in three months and below the median forecast of 50.3 in a Reuters poll.

This decline was driven by a decrease in new businesses received by Chinese producers, along with a solid contraction in new export business, the fastest since September of the previous year, according to the survey.

The weak demand for Asia’s factory output has helped reduce production costs.

In Japan, manufacturers reported a continued decline in input price inflation at the start of the third quarter, with the slowest increase in operating expenses in close to two-and-a-half years.

South Korea’s input prices fell at the fastest pace since July 2017, while Taiwan experienced the second-sharpest decline since May 2020. Taiwanese manufacturers cited competitive pricing strategies, price negotiations with clients, and improved material availability as factors contributing to cost savings.

“Sub-indices for both input and output prices stood near multi-year lows and point to further falls in inflation in the near-term,” said Capital Economics’ Tandon, referring to emerging East Asian economies.

Official government data revealed that inflation in South Korea slowed to 2.7% in June from a peak of 6.3% about a year ago, while inflation in Taiwan stood at almost 1.8% in June from its peak around the same time.

“The latest data support our view that price pressures are likely to soften steadily in the near-term, and with growth set to struggle and remain below-trend, central banks in the region are likely to start cutting interest rates soon,” Tandon added.