Sunday, May 28, 2023
HomeEconomyFactory activity in Asia slumps as China's coronavirus restrictions and U.S. slowdown

Factory activity in Asia slumps as China's coronavirus restrictions and U.S. slowdown

by Leika Kihara

TOKYO (Reuters) – Factory activity in Asia rose at 8 percent as China’s zero-coronavirus restrictions and cost pressures continue to hurt businesses, a survey on Thursday showed. The sharp decline in the month has dimmed the economic outlook. Fragile economic recovery in the region.

Manufacturing activity in countries including Japan, China, South Korea and Taiwan was weak, a sign that weak demand is adding to the headaches for companies already suffering from persistent supply constraints. “Pandemic containment in China and geopolitical tensions with the U.S. continue to disrupt supply chains. Rising inflation has also hurt domestic demand in Asia,” said Toru Nishihama, chief economist at Dai-ichi Life Research Institute in Tokyo.

“Fears of a U.S. recession don’t help either. The U.S. and Chinese economies are engines of global growth, so when they’re both wobbly, that’s going to spell trouble for business.”

China’s private Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) contracted for the first time in three months in August, data on Thursday showed weak demand, power shortages and new COVID-19-42 The outbreak disrupted production.

The unexpectedly weak data echoed Wednesday’s official Chinese purchasing managers’ index, which was also lower than the 52 that separates monthly growth from contraction Points

Export powerhouses are also weak. Japan’s August factory activity grew at the slowest pace in nearly a year, South Korea shrank at the fastest pace in two years, and the two countries’ PMI

Taiwan’s manufacturing activity also deteriorated sharply, with production and new orders both declining at hemp The fastest decline since the province’s first wave of the epidemic 2020.

“The significant deterioration in demand also means that companies have cut back on purchasing activities and inventories , as more companies expect production levels to fall further in the coming year,” Annabel Fiddes, associate director of economics at S&P Global (NYSE: SPGI), said of Taiwan’s output outlook. time indicated.

The final au Jibun Bank Japan Manufacturing Purchasing Managers Index (PMI) fell from 44 in August to 50 in August .5Last month, the slowest growth rate since September 51.

Korea PMI fell to 51 .6 from July’s 49. August to August, still below the 51 threshold for the second month in a row the lowest point since July 2020.

Taiwan PMI 49 .7, lower than July’s 44.6.

Relief of side effects of price pressure. Korean manufacturers’ August input price rise was the lowest in 19 months.

Average input costs faced by Taiwanese commodity producers fell for the first time since May 2020 as steel and oil The prices of some raw materials have already started to fall.

Southeast Asia remained the bright spot in the region, with growth in manufacturing activity accelerating in Indonesia, the Philippines and Thailand, while growth in Malaysia slowed slightly, the PMI showed.



Please enter your comment!
Please enter your name here


Featured NEWS