The contraction in Asia’s manufacturing activity slowed down in July, surveys of Purchasing Managers’ Index (PMI) showed. This highlights some signals that the region is recovering from the devastating hit of the COVID-19 pandemic. However, concerns on a new wave of infections may put business sentiment and global demand under pressure and hence, threatens any rebound in Asia’s industrial output.
A private survey showed China’s manufacturing PMI rose from 51.2 in June to 52.8 in July, the fastest increase since January 2011 and marks the sector’s third straight month of expansion. The growth was largely attributed to the improving domestic demand helped by the government’s stimulus package.
Japan’s flash manufacturing PMI increased from 40.1 in June to a seasonally adjusted 45.2 in July but remained below the 50-point threshold. This indicates that Japanese manufacturers still experienced a contraction, albeit at a slower pace.
South Korea’s manufacturing PMI also rose from 43.4 in June to the highest reading since January at 46.9 last month as pressure on output and new orders eased. However, export orders remained a concern for South Korean manufacturers over the next 12 months.
Manufacturing PMI in Taiwan, another Asian export-reliant economy, broke above the 50-point mark, underpinned by chip sales which rose amid the work-from-home trend. However, factory activity in the Philippines and Vietnam decreased last month, highlighting the patchy nature of the recovery.
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Published on August 4, 2020 11:31 AM (GMT+8)Last Updated on August 4, 2020 11:31 AM (GMT+8)
