As increasing prices continue to aggravate Asia’s governments moving into September, manufacturing activity slowed in August within Japan, Taiwan and South Korea, according to data released on Thursday. Investors in the US worried ahead of Labor Day – America’s annual holiday to welcome in September – that it would have adverse affects across the water.
South Korea fell for the first time since 2008 to 49.7 from 51.3 in July, presenting a jittering start to September. Taiwan dropped to 45.2 from 46.1 a month earlier. China saw a minor increase in production; however Japan’s growth dropped to 51.9, a three month low.
The results published in the Purchasing Managers’ Index are said to be supporting expert warnings of an economic slowdown in the region. Labor Day traditionally presents a stuttering start to September for US markets, which many anticipate will suffer a minor blip due to the news from Asia.