Asia’s factory activity slows in May as China Covid curbs weigh

June 2, 2022 China Crime & Legal

Asia’s factory activity slowed in May as China’s heavy-handed coronavirus curbs continued to disrupt supply chains and dampen demand, adding to woes for some of the region’s economies that are already under strain from surging raw material costs.

Manufacturers 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.

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, a private survey showed.

The outcome was in line with Tuesday’s official data that showed China’s factory activity fell at a slower pace in May. While Covid curbs are being eased in some cities, they continue to weigh heavily on confidence and demand.

Lockdowns in China have snarled regional and global logistics and supply chains, with both Japan and South Korea reporting sharp declines in output.