Manufacturers in Asia slowed activity last month in countries ranging from Japan to Taiwan and Malaysia, business surveys showed on Wednesday, a sign of the challenge policymakers face in combatting inflation with tighter monetary policy – without crippling growth.
The slowed manufacturing activities has caused disruption in supply chains and dampened demand, adding to woes for some of the region’s economies that are already under strain from surging raw material costs.
China’s Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) stood at 48.1 in May, up from 46.0 the previous month but staying below the 50-point threshold that separates contraction from expansion.
The outcome was in line with Tuesday’s official data that showed China’s factory activity fell at a slower pace in May.
Lockdowns in China have snarled regional and global logistics and supply chains, with both Japan and South Korea reporting sharp declines in output.
Japan’s manufacturing activity grew at the weakest pace in three months in May and manufacturers reported a renewed rise in input costs, the PMI survey showed, as the fallout from China’s lockdowns and the Ukraine conflict pressured the economy.
The final au Jibun Bank Japan PMI fell to a seasonally adjusted 53.3 in May from the previous month’s 53.5, marking the slowest pace since February.
Meanwhile, factory activity in the Philippines also slowed to 54.1 in May from 54.3 in April, in Malaysia the factory activity fell to 50.1 from 51.6 in April, PMI surveys showed. Taiwan’s manufacturing activity stood at 50.0 in May, down from 51.7 from April.
South Korea’s exports grew at a faster pace in May than a month earlier, data showed on Wednesday, as a rise in shipments to Europe and United States more than offset the fallout from China’s restrictions. South Korea’s monthly trade data, the first to be released among major exporting economies, is considered a bellwether for global trade.
