The hit to factory output from some of the world’s biggest trading hubs is a key warning for global demand as rising interest rates and inflation start to weigh on consumption.
In South Korea, a bellwether for global trade, “firms often commented on concerns that the economy would continue to perform poorly amid weak demand and challenging global economic conditions,” Usamah Bhatti, economist at S&P Global Market Intelligence, said in a report. The regional data came after more evidence of weakness in China’s manufacturing sector. Factory activity contracted in August, according to a private survey suggesting that fallout from power shortages and Covid outbreaks is hitting smaller firms alongside large and state-owned ones. The Caixin Manufacturing Purchasing Managers’ Index fell to 49.5 last month from 50.4 in July, according to a statement on Thursday from Caixin and S&P Global.in August for a second month in a row.