Tuesday, 28 September, 2021

Asia factory activity cools in August

TOKYO: Asia’s factory activity lost momentum in August as a resurgence in coronavirus cases disrupted supply chains across the region, raising concerns faltering manufacturing will add to the economic woes caused by slumping consumption.

Manufacturing activity in August expanded at a slower rate in Japan, South Korea and Taiwan as chip shortages and factory shutdowns disrupted production, in a fresh sign of the lingering impact of the pandemic, surveys showed on Wednesday, report agencies.

The result was well below market expectations, underscoring the fragile nature of China’s recovery that had helped the global economy emerge from the pandemic-induced doldrums.

“Virus disruptions add to the list of headwinds for the region’s producers, including semiconductor shortages and high shipping costs,” said Alex Holmes, emerging Asia economist at Capital Economics.