{"id":117528,"date":"2021-07-01T11:03:29","date_gmt":"2021-07-01T11:03:29","guid":{"rendered":"https:\/\/fin2me.com\/?p=117528"},"modified":"2021-07-01T11:03:29","modified_gmt":"2021-07-01T11:03:29","slug":"european-factories-racing-as-asian-manufacturers-see-momentum-weaken","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/european-factories-racing-as-asian-manufacturers-see-momentum-weaken\/","title":{"rendered":"European factories racing as Asian manufacturers see momentum weaken"},"content":{"rendered":"<p>LONDON\/TOKYO (Reuters) -European factories continued to ramp up their post-lockdown recovery in June but Asian manufacturers saw momentum weaken amid rising input costs and the reintroduction of curbs to combat a new wave of coronavirus infections, surveys showed.<\/p><figcaption>Labourers work in VinFast&#8217;s factory in Hai Phong City, Vietnam, April 22, 2021. Picture taken April 22, 2021. REUTERS\/Thanh Hue\/Files<\/figcaption><p>Euro zone manufacturing activity expanded at its fastest pace on record last month while Britain\u2019s factories extended their post-lockdown recovery and went on a hiring spree.<\/p>\n<p>\u201cHow has that story turned &#8212; a few months ago we were seeing the euro zone was lagging with vaccinations far behind. We were expecting a turnaround and we haven\u2019t seen much disappointment,\u201d said Bert Colijn at ING.<\/p>\n<p>\u201cThat upside scenario has materialised. There is a very broad feeling amongst businesses in both services and industry that the coming months are going to be very strong as economies reopen.\u201d<\/p>\n<p>Czech and Polish manufacturing hit a record pace of activity for the second month in a row as orders rose and economies opened up again.<\/p>\n<p>But manufacturing activity grew at a slower pace in China and Japan as raw materials rose, while activity shrank in Vietnam, Malaysia and India, where governments imposed tougher restrictions to contain fresh coronavirus outbreaks.<\/p>\n<p>A shortage of shipping containers and supply chains hugely affected by the global pandemic have made it a sellers\u2019 market for materials needed by factories. An index measuring input prices in the euro zone was at its highest since the survey began 24 years ago.<\/p>\n<p>IHS Markit\u2019s final manufacturing Purchasing Managers\u2019 Index (PMI) nevertheless rose to a survey high of 63.4 in June from May\u2019s 63.1, above an initial 63.1 \u201cflash\u201d estimate. Anything above 50 indicates growth. [EUR\/PMIM]<\/p>\n<p>Britain\u2019s PMI dipped to 63.9 from May\u2019s all-time high but the pace of expansion in output, new orders and employment remained among the highest in the survey\u2019s near 30-year history after some COVID-19 restrictions were eased. [GB\/PMIM]<\/p>\n<h2>ASIA LAG<\/h2>\n<p>Data showed Asia was lagging behind western economies in recovering from the pandemic doldrums, reinforcing the view that many regional central banks were unlikely to withdraw pandemic-era stimulus soon.<\/p>\n<p>\u201cThe June PMIs dropped back as virus outbreaks and supply chain issues created mounting headwinds for industry,\u201d said Alex Holmes, emerging Asia economist at Capital Economics.<\/p>\n<p>\u201cWith neither issue likely to be resolved soon, the rapid growth in industry over the past few quarters looks unlikely to be repeated.\u201d<\/p>\n<p>China\u2019s factory activity expanded at a softer pace in June with output growth slumping to the lowest level in 15 months, according to a private survey, in line with an official survey showing a dip in activity to a fourth-month low.<\/p>\n<p>The Caixin\/Markit Manufacturing PMI fell to 51.3 in June from May\u2019s 52, marking the 14th month of expansion but coming in below analyst expectations for only a slight slowdown to 51.8.<\/p>\n<p>Higher raw materials costs and a shortage of semiconductor chips also hurt export powerhouses including Japan, which saw factory activity expand at the slowest pace in four months in June.<\/p>\n<p>South Korea fared better, with factory activity growing for a ninth consecutive month in June, though record input and output price rises pointed to strains on manufacturers.<\/p>\n<p>\u201cManufacturers were increasingly commenting that severe supply chain disruption was starting to impact activity,\u201d said Usamah Bhatti, an economist at IHS Markit.<\/p>\n<p>Once seen as a driver of global growth, Asian\u2019s emerging economies are lagging advanced economies in recovering from the pandemic\u2019s pain as delays in vaccine rollouts hurt domestic demand and countries reliant on tourism.<\/p>\n<p>Vietnam\u2019s PMI plunged to 44.1, marking the sharpest deterioration in business conditions while Malaysia\u2019s PMI fell to 39.9 as renewed COVID curbs weighed on external and domestic demand. The PMI for Taiwan fell to 57.6 from 62.0.<\/p>\n<p>India\u2019s factory activity contracted for the first time in almost a year as restrictions to contain the deadly second wave of the coronavirus hit demand.<\/p>\n<p>Source: <a href=\"https:\/\/www.reuters.com\/article\/global-economy\/global-economy-european-factories-racing-as-asian-manufacturers-see-momentum-weaken-idUSL2N2OD0GG\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>LONDON\/TOKYO (Reuters) -European factories continued to ramp up their post-lockdown recovery in June but Asian manufacturers saw momentum weaken amid rising input costs and the [&#8230;]<\/p>\n","protected":false},"author":3,"featured_media":117527,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>European factories racing as Asian manufacturers see momentum weaken - 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