Rising costs, new Covid wave hurt Asia factories activity
Surveys on Thursday showed factory activity in Asia slowed down in June as some countries faced increase in input costs and a new wave of coronavirus infections.
Vietnam and Malaysia were greatly affected. Both countries experienced a deceleration in manufacturing activities due to the implementation of stricter coronavirus restrictions.
Vietnam’s Purchasing Managers’ Index (PMI) fell to 44.1 in June from 53.1 in May, the sharpest decline in business conditions for over a year.
Malaysia’s PMI was also down to 39.9 in June from 51.3 in May.
China’s output growth declined to its lowest level in 15 months resulting to slow factory activity expansion in June. A private survey showed a dip in activity to a fourth-month low.
China’s PMI fell to 51.3 in June from May’s 52.
Japan also experienced the slowest pace in four months, a result of more expensive raw material costs and a shortage of semiconductor chips.
Meanwhile, South Korea saw growing factory activity for nine consecutive months.