Manufacturing activity of major Asian economies suffers from reducing export orders
Manufacturing activity in major Asian economies suffered in August from reducing export orders, Reuters reports. This is the first sign that companies felt consequences of tense trade relations between the US and China, which as many are afraid, can limit global growth.
Manufacturing activity in major Asian economies suffered in August from reducing export orders, Reuters reports. This is the first sign that companies felt consequences of tense trade relations between the US and China, which as many are afraid, can limit global growth.
Results of purchasing managers’ surveys published on Monday showed that there is a pressure on key export countries, including China, Japan and South Korea.
As of China, manufacturing sector growth was the slowest in more than a year in August, while export orders volumes are falling five months in a row.
Export orders are also fell in Japan and South Korea that shows influence of growing protectionism and slower Chinese demand on export-dependant economies in Asia.
Chinese Caixin/Markit PMI index fell in August to 50,6 from 50,8 in July. Although index is still above 50 level, which separates growth from contraction, its value is the lowest since June 2017.
Activity of factories in South Korea, which is the key manufacturing destination, falls for fifth month.
Production activity in Japan grew in August with slightly higher pace that in previous month, however, reducing export orders indicate that trade conflict hit this country as well.
Asian countries that are less reliable on export, such as Indonesia and Malaysia, showed slightly better results. But their currencies suffered from recent sell-offs at emerging markets.
Australia showed better production activity in August among increase in new orders and export. However, retail sales fell.