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Simon Murray, Research Analyst at Westpac, explains that it was another mixed result for Asian PMIs, which saw the distribution narrow as emerging economies strengthen and advanced economies moderate.

Key Quotes

“It was another mixed result for the Asian PMIs in May with the developing economies firming further as the advanced economies continued to moderate. The result is consistent with 2018’s general slowing, with the advanced Asian economies more closely linked to the global supply chain. However, despite increased volatility and some capital flight, emerging economies’ manufacturing sectors have gained momentum in 2018.”

“We can see that through the global uplift, many economies stretched the distribution to the right as they gained pace. On the other hand, idiosyncratic factors had seen diverging paths for emerging economies in 2017. Now that the emerging economies have firmed, whereas the advanced nations have slowed, the distribrution has narrowed.”