COVID-19 devastates Asia’s August factory activity
Asia’s factory activity slowed in August following a surge in COVID-19 cases that disrupted the supply chains across the region. The situation prompted fears that the declining industry may exacerbate economic troubles due to weak consumption.
Manufacturing activity in Japan, South Korea, and Taiwan recorded relatively slow growth as productions continuously struggled with chip shortages and factory shutdowns.
The final au Jibun Bank Japan PMI dropped to 52.7 in August from 53.0 in July. South Korea’s PMI also fell from 53.0 to 51.2, while Taiwan’s PMI was down to 58.5 from 59.7. Vietnam also recorded a drop in its factory activity from 45.1 to 40.2 in the same period.
In China, factory activity contracted in August, still a result of COVID-19 control efforts, supply constraints, and high input costs.
The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) slid to 49.2 from 50.3, a breach of the 50 mark that indicated contraction.