![]() ![]() South Korea's PMI fell to 47.6 in March from 48.5 in February, its weakest in six months as export orders took a hit. economic growth will still rely on a boost in domestic demand, especially an improvement in household consumption," Wang Zhe, senior economist at Caixin Insight Group, said on China's PMI. "The foundation for economic recovery is not yet solid. The reading echoed slower growth in an official PMI released on Friday. "With global growth set to remain weak in the coming quarters, we expect manufacturing output in Asia to remain under pressure," said Shivaan Tandon, emerging Asia economist at Capital Economics.Ĭhina's Caixin/S&P Global manufacturing PMI stood at 50.0 in March, much lower than market forecasts of 51.7 and below February's 51.6. While supply disruptions caused by the pandemic have mostly run their course, weak chip demand and fresh signs of slowdown in global growth have emerged as risks to many Asian economies.Įxport-reliant Japan and South Korea both saw manufacturing activity contract in March while growth in China stalled, highlighting the challenge facing Asia as authorities try to keep inflation in check and fend off headwinds from faltering global demand. The improving supply chains and lower energy costs meant input prices fell in the euro zone for the first time since July 2020 - just when the COVID-19 pandemic was cementing its grip. In Britain, outside the European Union, manufacturers also slipped, but did turn more optimistic about the future as cost pressures and supply chain problems eased. German manufacturing activity shrank in March at the fastest pace in almost three years, while weak demand continued to drag down France's factory sector as purchasing managers turned pessimistic about the 12-month outlook for their businesses. Although consumer demand has largely held across sectors, this could lessen gradually," said Thomas Rinn, global industrial lead at Accenture. "Today's PMI results highlight that challenges remain for manufacturing companies. S&P Global's final euro zone manufacturing Purchasing Managers' Index (PMI) fell to 47.3 in March from February's 48.5, just ahead of a preliminary reading of 47.1 but below the 50 mark for a ninth month.Īn index measuring output, which feeds into a composite PMI due on Wednesday that is seen as a good guide to economic health, did however rise to a 10-month high of 50.4 from 50.1. In the euro zone, factories across the bloc also saw a further decline last month, although there too the cost of manufacturing fell for the first time since mid-2020. The ISM survey's measure of prices paid by manufacturers dropped to 49.2 from 51.3 in February.īut oil prices surged on Monday, posting the biggest daily rise in nearly a year, after a surprise announcement by OPEC+ on Sunday to cut more production, likely adding to inflationary pressures. With supply improving, inflation at the factory gate retreated. The ISM's survey did, however, also show work backlogs continued to shrink last month, reflecting the drop in demand as well as improved supply chains. central bank is expected to pause its tightening cycle soon, but the outlook remains clouded by the banking-sector troubles, still-high inflation and slowing global growth with market turbulence shedding light on potential vulnerabilities in the world financial system. "While an onshoring of supply networks and investment in domestic manufacturing capacity could provide support to factory activity, a further tightening in credit conditions may be a hurdle going forward," said Rubeela Farooqi, chief U.S. ![]() regional banks and the takeover of Credit Suisse, which stressed the financial sector. ![]() Demand could also come under further pressure following the recent failure of two U.S. Rising borrowing costs as the Federal Reserve fights high inflation have cooled demand for goods, which are typically bought on credit. But so-called hard data have suggested that manufacturing, which accounts for 11.3% of the economy, continues to grow moderately. It was the fifth straight month that the PMI remained below the 50 threshold, which indicates contraction in manufacturing.
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