IMF warns of slowing Asia factory activity amid AI demand correction

October surveys show cooling growth in Japan, South Korea and Taiwan as the IMF flags the risk of an AI pullback Asia’s factories are still growing. They’re just growing with noticeably less enthusiasm than before. Private surveys released on Monday, November 2, showed manufacturing activity across the region stayed in expansion territory in October. Growth cooled, however, in the economies most tied to the AI chip trade: Japan, South Korea and Taiwan. That pattern suggests the artificial intelligence boom may be losing some momentum as markets begin to question how profitable the sector really is. The timing matters. The International Monetary Fund has already put a potential correction in AI-driven demand on its list of risks for the region. The October numbers are the first hard data that look a bit like that warning taking shape. The numbers behind the slowdown According to S&P Global’s October surveys, South Korea’s PMI came in at 51.3, its lowest reading in eight months. Japan registered 53.3, a seven-month low. Taiwan, home to much of the world’s advanced chipmaking, posted 54.9. That’s still solid growth, but it’s down from 56.7 the prior month. China was the odd one ou...