The factory’s output dropped wider across Asia in November as global demand has slowed, due to a result of China’s COVID-19 lockdowns, which darken Asia’s economic outlook in 2023.
China’s factory activity fell in November because of the pandemic restriction that ruined international supply and escalated fears of further drop in the economy.
Countries that rely on exports to drive their economy such as South Korea, Japan and Vietnam also see a contraction in manufacturing activity that underlined demand from weak global demand and nagging high input costs.
China’s Caixin/S&P Global manufacturing purchasing managers’ index (PMI) in November increased to 49.4, up from the previous month of 49.2 but still lower than 50, which separates contraction from growth.
China’s lockdown has an impact on the biggest factory producing Apple’s iPhone. The lockdown has also sparked protests on the street across many cities.
Japan’s au Jibun Bank PMI also decreased in November to 49.0 from 50.7 in October, it was the first decline since November 2020.
Taiwan’s PMI in November increased to 41.6, up slightly from 41.5 in October, but still far lower than the 50 mark.
Vietnam’s PMI in November decreased to 47.4 from 50.6 in October, and Indonesia slid to 50.3 from 51.8.