Asia’s manufacturing grew in January 2026, fueled by strong U.S. demand and rising exports, with most nations reporting expansion.

Asia’s manufacturing sector showed broad-based expansion in January 2026, led by strong global demand, particularly from the U.S. Japan’s PMI rose to 51.5, its highest since 2022, driven by surging export orders and output. South Korea, China, Taiwan, Malaysia, the Philippines, Indonesia, and Vietnam also reported growth, with most indices above 50. Export demand, new orders, and hiring increased across the region, though rising input costs and inflation pressures emerged as concerns. The IMF upgraded its 2026 global growth forecast.