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By Lucía Mutikani and Jonathan Cable
WASHINGTON/LONDON (Reuters) – U. S. productionRose in August, but factory activity in China, the eurozone and Britain fell as Russia’s war in Ukraine and COVID-19 restrictions in China continued to hurt businesses, surveys showed on Thursday, even though there were indications that cargo pressures were beginning to ease.
The overall weakness of global production activity, coupled with symptoms of weak demand in many countries, has exacerbated the headaches of corporations already suffering from persistent restrictions.
Major central banks are expected to continue their competitive interest rate hikes to engage inflation, which is also dampening optimism amid growing fears of a slowdown.
The Institute of Supply Management (ISM) said Thursday that its U. S. factory activity index is not being used to be the U. S. factory activity index. UU. se was unchanged at 52. 8 last month, although it remains the lowest reading since June 2020, when the sector emerged from a COVID-19-induced crisis. A reading above 50 indicates an expansion of the productive sector, which accounts for 11. 9% of the U. S. economy.
But the prospective new orders sub-index rebounded to 51. 3 last month from 48. 0 in July, ending with two consecutive monthly declines, and order books rose, suggesting factories in the world’s largest economy will continue to operate for some time.
The U. S. production sector The U. S. looks resilient despite a shift in facilities spending and a decline in business confidence amid emerging interest rates.
There has also been some relief for U. S. factories. U. S. governments face sky-high costs, as weakening global demand has the side effect of easing price pressures. 60. 0 in July.
Elsewhere, input costs fell in China and Taiwan for the first time since May 2020. South Korean brands posted input costs in August at the lowest rate in 19 months, and average input costs faced by Taiwanese product brands fell for the first time since May. 2020.
In the euro area, the intermediate consumption value index remained well above its long-term average, but fell to its lowest point since early last year.
However, this has eased considerations about slowing global growth.
“We expect a recession in the eurozone and one in the United States next year. It remains to be seen whether this will turn into a global recession,” said Peter Schaffrik of the Royal Bank of Canada.
MANUFACTURING is shrinking in Europe and Asia
Outside the United States, symptoms of tension have intensified. Manufacturing activity in the euro’s dominance fell for a momentary month in August, while weak convening prevented factories from promoting as much as they manufactured and built inventories of finished goods at a record pace. [ EUR/PMIM]
The latest S Euro Zone Manufacturing Purchasing Managers’ Index (PMI)
In Britain, outside the European Union, output and new orders have fallen to the highest in more than two years as uncertainty about rising inflation and the threat of a domestic recession deepens. [Go/PMIM]
China’s private manufacturing PMI in Caixin for the first time in 3 months in August, as weak demand, power shortages, and new COVID-19 outbreaks disrupted production.
The strangely weak reading echoes china’s official PMI released on Wednesday, which is also below the 50-point mark.
“The fight against the pandemic in China and geopolitical tensions with the United States continue to disrupt the chains. Rising inflation is also affecting domestic demand across Asia,” said Toru Nishihama, lead economist at the Dai-ichi Life Research Institute in Tokyo.
Export powers also reported weaknesses. Japan’s factory activity grew at its slowest rate in nearly a year in August, while South Korea’s fell at the fastest rate in two years, the PMI for both countries showed.
In Germany, Europe’s largest economy and main exporter, the productive sector for a month now.
Manufacturing activity deteriorated sharply in Taiwan, with production and new orders falling at the fastest rate since the first wave of the pandemic in May 2020.
The final production PMI at Jibun Bank Japan fell to 51. 5 in August from 52. 1 last month, marking the slowest rate of expansion since September 2021.
South Korea’s PMI fell to 47. 6 in August from 49. 8 in July, remaining below the 50 threshold for a month and reaching its lowest point since July 2020.
India’s business activity continued to grow strongly in August, thanks in part to an increase in output due to declining input price inflation, the country’s PMI showed.
Southeast Asia remained a bright spot in the region with an acceleration in the expansion of production activity in Indonesia, the Philippines and Thailand, while Malaysia’s expansion slowed slightly, according to the PMIs.
(Reporting by Lucia Mutikani, Jonathan Cable, Leika Kihara; Writing by Lindsay Dunsmuir; Editing by Sam Holmes, Hugh Lawson and Andrea Ricci)