Asia’s factories hit by supply chain disruptions from Covid-19 resurgence (The Straits Times)
Asia’s factory activity lost momentum last month as a resurgence in coronavirus cases disrupted supply chains across the region, raising concerns faltering manufacturing will add to economic woes caused by slumping consumption.
South-east Asia, a low-cost manufacturing hub for many global companies, was hit particularly hard with factory activity shrinking in Vietnam, Indonesia and Malaysia because of virus outbreaks and output suspensions, surveys showed on Wednesday (Sept 1).
In a worrying sign for the global economy, China’s factory activity also slipped into contraction last month for the first time in nearly 1½ years as Covid-19 curbs, supply bottlenecks and high raw material prices weighed on output.
Export powerhouses Japan, South Korea and Taiwan also saw manufacturing activity expand at a slower pace last month, a sign chip shortages and factory shutdowns in the region could delay a sustained recovery from the pandemic-induced slump.
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