Manufacturing growth to slow, but not sharply

Manufacturing output across Emerging Asia is likely to grow at a sluggish pace in the near term

given the weakness in global demand. However, output and orders continue to rise in most

countries in both Emerging Asia and elsewhere, albeit at a slower pace. In addition, the easing in

raw material costs and the unwinding of supply-chain problems in Japan should support activity.

The upshot is that we continue to expect central banks across the region to tighten further in the

coming months

.