Asian factory activity plummets on China’s slowdown, supply constraints

Asia’s manufacturing activity remained generally sluggish in September. This was attributed to pandemic-driven plant shutdowns and China’s weak economic growth’s effect on the region.

The official Purchasing Manager’s Index (PMI) showed an unexpected decline in China’s factory activity, owing to the country’s energy crisis.

The private Caixin/Markit Manufacturing PMI showed better figures after a slump in August.

The final au Jibun Bank Japan Manufacturing PMI dropped to 51.5 in September from 52.7 in August. The latest figure marked the slowest growth rate since February.

South Korea’s PMI climbed to 52.4 from 51.2.

Taiwan’s PMI index slid to 54.7 from 58.5, while Vietnam’s index remained at 40.2

Indonesia’s PMI soared to 52.2 from 43.7, while India’s PMI improved to 53.7 from 52.3.

Countries like Indonesia and India, where big outbreaks of the COVID-19 Delta variant have subsided, saw an increase in activity.

However, manufacturing activity in Malaysia and Vietnam fell in September. It increased in Japan at the weakest rate in seven months.