Rising costs, Delta variant devastate Asian factory activity
Asia’s factories hit a snag in July following a rise in input costs and a surge in coronavirus cases that disrupted a strong global demand. This development highlighted the region’s weak recovery from the pandemic.
China’s Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) dropped to 50.3 in July from June’s 51.3, touching the lowest level in 15 months.
Indonesia’s PMI plunged to 40.1 in July from 53.5 in June.
Private surveys also showed a slowdown in factory activity in Vietnam and Malaysia, though no specific figures were shared.
Meanwhile, export powerhouses Japan and South Korea saw an expansion in their manufacturing activity. However, supply chain interruptions and raw material shortages drove up costs in firms.
The final au Jibun Bank Japan PMI rose to 53.0 in July from 52.4 in June.
South Korea’s PMI climbed at 53.0 in July, above the 50 mark. The country records activity expansion for ten straight months now.