- China’s private survey reveals a continuation of the PMI downturn.
- In Japan and South Korea, industrial activity declines.
- Surveys indicate a deteriorating prognosis for Asia in 2019.
China’s rigorous Covid-19 lockdowns and a slowdown in global demand knocked on company mood in November, according to surveys released Thursday.
The results showed Asia’s deteriorating economic picture for 2023, as the lockdowns disrupt international supply and heighten fears of a further downturn in the second-largest economy in the globe.
China’s industry activity decreased in November because of pandemic restrictions, a private study said on Thursday. The findings indicated that employment and economic growth would be weaker in the fourth quarter.
Surveys revealed that manufacturing activity dropped in export-dependent economies, such as Japan and South Korea, and in rising nations, such as Vietnam, highlighting the escalating harm from poor global demand and stubbornly high input costs.
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According to economist Laura Denman of S&P Global Market Intelligence, which produces the study on Japan, “cooling market conditions, sustained cost pressures, and weak underlying demand, both domestically and internationally, were reportedly pivotal factors contributing to the declines.”
In November, China’s Caixin/S&P Global manufacturing purchasing managers’ index (PMI) was 49.4, up from 49.2 the previous month but still below the 50 threshold that distinguishes expansion from contraction. It has been below 50 for the past four months in a row.
The figure followed gloomy figures from an official survey released on Wednesday, which indicated that manufacturing activity reached a seven-month low in November.
November’s au Jibun Bank PMI for Japan decreased to 49.0 from 50.7 in October. Since November 2020, this is the first contraction.
In November, manufacturing activity in South Korea declined for the fifth consecutive month, but the decline reduced marginally, likely indicating that the worst is over for firms.
Nevertheless, South Korea’s exports in November experienced their biggest annual decline in two and a half years, according to separate statistics released on Thursday. The decline was caused by cooling global demand in major markets, headed by China, and a decline in the semiconductor industry.
Lockdowns in China have impacted output at a factory that is the largest iPhone manufacturer for Apple Inc (AAPL.O). They have also sparked uncommon street protests in a number of places.
Asia was significantly impacted by China’s difficulties. In November, Taiwan’s PMI rose marginally to 41,6 from 41,5 in October but remained well below 50.
Vietnam’s PMI decreased to 47.4 in November from 50.6 in October, while Indonesia’s PMI decreased to 50.3 from 51.8, according to private surveys.
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