financetom
Economy
financetom
/
Economy
/
Asian factories shake off lockdown blues, now face supply headaches
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Asian factories shake off lockdown blues, now face supply headaches
Nov 1, 2021 12:37 AM

Asia's manufacturing activity grew in October as emerging economies saw COVID-19 infections subside, but rising input costs, material shortages and slowing Chinese growth cloud the outlook, business surveys showed on Monday.

Share Market Live

NSE

Policymakers in the region face pressures on multiple fronts as they steer their economies out of the pandemic-induced doldrums while also trying to keep prices under control amid rising commodity costs and parts shortages.

China's factory activity expanded at its fastest pace in four months in October, the private Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) showed on Monday, as dwindling COVID-19 cases drove up domestic demand.

But a sub-index for output showed production shrank for the third straight month due to power shortages and rising costs, falling in line with Sunday's official PMI that showed factory activity in October shrank more than expected.

"Shortages of raw materials and soaring commodity prices, combined with electricity supply problems, created strong constraints for manufacturers and disrupted supply chains," said Wang Zhe, senior economist at Caixin Insight Group.

Factory activity in October expanded in Vietnam, Indonesia and Malaysia as operations gradually normalised after being hit by shutdowns caused by a spike in COVID-19 infections.

Taiwan saw manufacturing activity growth accelerate on robust chip demand, while Japan's factory activity expanded at the fastest pace in six months in October in an encouraging sign for the world's third-largest economy.

In a sign of the patchy nature of Asia's recovery, however, South Korea's factory activity rose at the slowest pace in 13 months in October on shrinking output and softer demand.

Material shortages and delivery disruptions drove up Japan's input prices by the most in over 13 years.

"While October Manufacturing PMIs point to a strong rise in manufacturing output, industry is likely to be working through huge backlogs of orders for many months to come and resulting supply shortages further afield are set to persist," said Alex Holmes, emerging Asia economist at Capital Economics.

The final au Jibun Bank Japan PMI in October rose to 53.2 from 51.5 in the previous month, expanding for the ninth consecutive month.

South Korea's PMI, by contrast, fell to 50.2 in October from 52.4 in September, though it managed to stand above the 50-mark threshold that indicates expansion in activity, for a 13th straight month.

Vietnam's PMI rose to 52.1 from 40.2 in September, while that of Indonesia increased to 57.2 from 52.2, the surveys showed. Malaysia's index stood at 52.2, up from 48.1.

Asia's emerging economies have lagged advanced economies in recovering from the pandemic's pain as delays in vaccine rollouts and a spike in Delta variant cases hurt consumption and factory production.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
US Congress struggling to reach spending deal to avert weekend shutdown
US Congress struggling to reach spending deal to avert weekend shutdown
Mar 20, 2024
WASHINGTON (Reuters) - A fractured U.S. Congress struggled behind the scenes on Wednesday to produce a massive spending bill to fund defense, homeland security and other programs that lawmakers must pass before the weekend to avert a partial government shutdown. Republican House of Representatives Speaker Mike Johnson and other House Republican leaders said they hope to vote on Friday, leaving...
Fed Could Be 'Odd Man Out' If It Remains Hawkish After Latest Rate Decision, Macquarie Says
Fed Could Be 'Odd Man Out' If It Remains Hawkish After Latest Rate Decision, Macquarie Says
Mar 20, 2024
11:50 AM EDT, 03/20/2024 (MT Newswires) -- The Federal Reserve will likely be bucking the trend of other central banks if it remains hawkish after its latest decision on interest rates is announced Wednesday afternoon, Macquarie said in a report. The European Central Bank is conspicuously affirming it will cut rates in June, and the Bank of England may come...
US retail sales to rise at a slower pace in 2024, says NRF
US retail sales to rise at a slower pace in 2024, says NRF
Mar 20, 2024
(Reuters) - U.S. retail sales are expected to rise as much as 3.5% this year, a slower pace than 2023, industry body National Retail Federation said on Wednesday, as sticky inflation dampens hopes of a strong recovery in consumer spending. CONTEXT U.S. consumer prices increased solidly in February on higher costs for gasoline and shelter, the second straight month of...
CBO says US 30-year deficits to grow at slower pace due to spending caps, stronger GDP
CBO says US 30-year deficits to grow at slower pace due to spending caps, stronger GDP
Mar 20, 2024
WASHINGTON, March 20 (Reuters) - The Congressional Budget Office said on Wednesday that U.S. deficits and debt will grow considerably over the next 30 years as interest costs mount, but the outlook had improved from forecasts made last June due to spending limits passed by Congress and stronger projected economic growth. The CBO's latest long-term budget projections show federal deficits...
Copyright 2023-2026 - www.financetom.com All Rights Reserved