Manufacturing

Factories in upbeat mood despite fears over economic impact of US war on Iran, poll findsBusiness live – latest updatesUK manufacturers ramped up production last month for the fourth consecutive month and at the fastest pace in almost two years, according to a leading survey of the industry.The S&P Global poll of manufacturers found them in upbeat mood in July, though anxious about the prospect of a long war in the Middle East that would block supplies of oil and gas, and raise the cost of production. Continue reading...

• Manufacturing growth forecasts have been raised to 9%, driven primarily by the surge in AI-powered electronics. • In major financial moves, Allianz has acquired HSBC Life Singapore for $2.1 billion, while UOB is upgrading 300,000 Visa cards to premium tiers across ASEAN. • Singapore's global startup standing has seen a significant rise, climbing from 16th to 4th place over the last five years.

• India is accelerating its electronics and space ambitions by expanding manufacturing incentives and entering the private orbital launch sector to reshape its tech ecosystem. • South Korea's Seoul Semiconductor is currently in early talks with several state governments to establish an LED manufacturing plant, leveraging the ISM 2.0 incentive scheme. • Despite these gains, the smartphone market is facing significant pressure due to global memory shortages, inflation, and rising component costs, which have weakened handset sales.

• South Korean and US technology giants have agreed to pursue $950 billion in semiconductor supply and manufacturing partnerships over the next five years. • The sweeping series of deals was unveiled at the San Francisco AI Summit during a visit by South Korean President Lee Jae Myung. • These collaborations aim to advance the Lee administration's flagship megaprojects focusing on semiconductors, AI data centers, and physical AI.

• Indian startups raised $209 million during the funding week ending July 25, 2026, marking a 44% decline from the previous week's totals. • Investment themes shifted away from AI, with venture capital flowing instead into manufacturing, aerospace, enterprise software, and healthtech. • This diversification signals a broader strategic shift in the Indian startup ecosystem as investors seek opportunities in DeepTech and physical infrastructure.

Exclusive: Ro Khanna says ‘reindustrialization’ effort would provide grants, loans and investments to smaller businessesDemocrats in the US Congress have laid out plans for what they say would be the “boldest” bid to revitalize the country’s industrial heartlands since the second world war – using revenue raised by tariffs on China.A bill introduced this week would create a new bank to strengthen domestic manufacturing, provided with up to $15bn in funds each year. Continue reading...

• AMD CTO Mark Papermaster asserts that Europe's strategic AI advantage lies in interoperability and supply diversity rather than focusing solely on semiconductor manufacturing. • He argues that the primary challenge has shifted from GPU access to integrating AI into complex operational environments while ensuring security, control, and flexibility. • This shift is supported by legislative efforts, specifically the draft Chips Act 2.0 and the proposed Cloud and AI Development Act.

AMWU calls for wealth and inheritance taxes, free education and more revenue from gas companies as it outlines ‘working-class agenda’Get our breaking news email, free app or daily news podcastA new tax rate for the highest income earners, introducing wealth and inheritance taxes and extracting more revenue from gas companies form part of a new leftwing manifesto circulating ahead of the Labor party’s national conference.The extra tax revenue could help raise the jobseeker rate, make education – including university – free, and nationalise aged care under what the Australian Manufacturing Workers’ Union (AMWU) calls a blueprint for a “working-class agenda”. Continue reading...

• Singapore's manufacturing sector experienced a 12.2% year-on-year growth in the second quarter of 2026, accelerating from 8.0% in Q1. • This surge was primarily driven by strong AI-related demand for semiconductors and semiconductor manufacturing equipment. • The manufacturing boom significantly boosted the broader economy, leading to an overall growth rate of 5.7% for the period.

• Made-in-China.com showcased its industrial-grade 3D modeling and SourcingAI tools at the Manufacturing Expo 2026 to support Thailand's digital transformation. • The initiative aligns with the "Thailand 4.0" strategy, aiming to help local manufacturers overcome rising operational costs and intensify global competition. • These AI-driven sourcing and modeling technologies are designed to enhance supply chain efficiency and streamline the procurement of industrial components.

• Singapore's GDP grew by 5.7% in the second quarter, driven primarily by a surge in manufacturing fueled by AI-related demand. • While goods-producing industries accelerated, the services sector saw a slowdown, edging up only 0.3% sequentially compared to 2% in Q1. • Sector performance was mixed, with real estate expanding due to steady developer activities while the food and beverage services sector contracted.

• Singapore's economy grew by 5.7% year-on-year in Q2 2026 (April to June), marking a slowdown from the 6.3% growth recorded during the same period last year. • The deceleration occurred despite a reported jump in the manufacturing sector, indicating a shift in the broader economic momentum. • This growth trend coincides with other regional developments, including new Memorandums of Understanding aimed at a 3.4GW electricity trade goal between Singapore and Indonesia.

• Japan has partnered with the company Noetra to deploy 10 million robots across 18 different job sectors by 2040. • The initiative focuses on integrating "physical AI" into critical industries, specifically targeting healthcare and food manufacturing to improve efficiency. • This large-scale deployment is designed to address Japan's severe labor shortages and the need for increased productivity in the workforce.

• China's manufacturing Purchasing Managers' Index (PMI) grew in June, though the growth rate fell slightly below market expectations. • The data indicates a slower-than-anticipated expansion in the industrial sector, reflecting potential headwinds in production and demand. • This trend is significant as it suggests a cooling of manufacturing momentum, which could impact China's broader economic recovery and global trade.

• Japan's final Manufacturing PMI for June was reported at 54.8, slightly lower than the preliminary 54.9 but higher than the previous 54.5. • Japanese factories are experiencing their strongest quarter in over a decade, driven in part by global stockpiling efforts linked to ongoing war conflicts. • Regional economic trends show South Korean exports growing at a decades-high pace due to record chip sales, while the Japanese Yen has dropped to its weakest level since 1986.

• Japan's Jibun Bank Manufacturing PMI for June was reported at 54.8, slightly missing the forecasted value of 54.9. • The reading indicates continued expansion in the manufacturing sector, as any figure above 50.0 signals growth. • This data is critical for economists and FX experts to gauge the health of Japan's industrial output and potential monetary policy shifts.

• Thailand's manufacturing sector experienced a rebound in June, with the Purchasing Managers' Index (PMI) indicating growth in the goods-producing sector. • New business inflows rose for the 14th consecutive month, fueled by new client acquisitions, effective marketing, and large orders from existing customers. • The recovery is significant as it demonstrates a sustained upward trend in industrial demand and operational expansion.

• Japan's manufacturing sector expanded for the sixth consecutive month in June, according to the latest S&P Global Purchasing Managers’ Index (PMI). • The PMI rose to 54.8 in June from 54.5 in May, aligning with previous preliminary flash estimates. • This growth is significant as any reading above the 50.0 threshold indicates sector expansion, while readings below signal contraction.

• China's manufacturing sector experienced a rebound in June, fueled by a global surge in AI investments and strong export demand for technology products. • The growth faces significant headwinds from a domestic property crisis and weak consumer spending, as well as rising input costs and declining overseas inventories. • Diplomatic tensions persist after a May meeting between President Donald Trump and leader Xi Jinping failed to produce breakthroughs regarding tariffs or the conflict in Iran.

• Ransomware attacks in Europe surged by 55.1% year-over-year during the first four months of 2026, averaging 171 incidents per month. • The manufacturing sector has become the most affected industry as cybercriminals increasingly utilize supply chains as a primary attack path. • Nearly 70% of all activity was concentrated in five nations—Germany, the UK, France, Italy, and Spain—with Germany identified as the most-targeted country.

• The Asian economic calendar for July 1, 2026, highlights key events including the release of China's manufacturing PMI, though ING warns that domestic demand remains weak. • In the currency and commodities markets, the Japanese Yen has plummeted to its weakest level since 1986, raising concerns over potential government intervention, while Gold Futures are testing a critical decision zone between 3,989 and 3,995. • Micron has seen a massive 800% rally, leading analysts to issue a unanimous "Strong Buy" rating based on the ongoing AI boom, despite warnings regarding potential valuation traps.

• The European Union is deploying 19 AI Factory hubs and planning nine new supercomputers to integrate industrial AI into its manufacturing sector. • This strategic push aims to close the competitive gap with the US and China, leveraging Europe's existing manufacturing expertise as a "competitive moat." • A significant funding disparity persists, with the US receiving 75% of global AI venture capital compared to less than 12% flowing into Europe.

• A new report reveals that India's labour productivity gap with China has widened significantly since 2000, despite the country's strong overall GDP growth. • India has failed to achieve the industry-led productivity transformation seen in peer nations like China and South Korea due to structural constraints and pandemic-related disruptions. • This gap matters because it indicates that India's economic growth is not yet driven by a high-efficiency manufacturing leap, limiting its global competitiveness.

• India's manufacturing sector experienced its fastest expansion in three months during May, driven by sustained demand. • Despite the growth, businesses faced some of the most intense cost pressures seen in nearly four years. • Business optimism has declined, reaching its lowest level since February.

• India's manufacturing PMI increased to 54.7 in April from 53.9 in March, indicating continued expansion in the sector despite external headwinds. • The uptick reflects strong demand and production growth, though inflationary pressures have intensified due to ongoing Middle East geopolitical tensions affecting commodity prices. • A PMI above 50 signals economic expansion, and the improvement suggests Indian manufacturers are maintaining resilience in production activity and order books.

• FANUC America announced a $90 million investment on March 24, 2026, to build production-ready capacity for robot manufacturing in Rochester Hills, Michigan. • The project, targeting completion in late 2027, will create 225 new jobs and boost engineering for automation solutions including physical AI and digital twins. • This brings FANUC's US investments since 2019 to nearly $300 million, expanding facilities to 3 million sq. ft. and creating over 700 jobs.