Slowdown in Asia’s factory output

September saw a significant decline in Asia’s factory output as the effects of ongoing cost pressures and declining demand in China and advanced nations. Taiwan and Malaysia saw a drop in manufacturing activity, and Japan, India, and Vietnam all had slower growth in September compared to August as a result of increased raw material costs and the gloomy outlook for the world economy. 

China’s factory and services activity slowed down due to as strict COVID lockdowns which further lead to falls in production and sales. Asia’s prospects for recovering from the COVID-19 outbreak heighten worries about a global downturn as major central banks begin to increase the rate of interest to tame inflation. 

Vietnam’s PMI dropped to 52.5 from 52.7 in August, and Malaysia’s dropped to 49.1 from 50.3. Taiwan’s PMI fell from 42.7 in August to 42.2 in September. The surveys indicated India’s industrial growth declined to a three month low in September due to a decrease in demand and output, despite reducing inflationary pressures and strong business confidence.