Business activity in Japan and South Korea falls the most in more than a decade

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Manufacturing surveys suggest rebound will be delayed, despite China’s factory activity returning to growth in May

Workers produce clothes in a factory in Huaibei, in China’s Anhui province. Picture: AFP PHOTOAsia’s factory pain deepened in May as the slump in global trade caused by the coronavirus pandemic worsened, with export powerhouses Japan and South Korea suffering the sharpest declines in business activity in more than a decade.

But with many of China’s trading partners still restricted, its new export orders remained in contraction, the private business survey showed on Monday. China’s official PMI survey on Sunday showed the recovery in the world’s second-largest economy intact but fragile. Asia’s economic woes are likely to be echoed in other parts of the world including Europe, where economies continue to suffer huge damage in factory and service sectors.

The IMF warned last month the global economy will take much longer than expected to recover fully from the virus shock, suggesting a downgrade to its current projection for a 3% contraction this year.

 

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