GLOBAL ECONOMY : Asia factory activity sputters as trade woes hit export orders..........
Factory activity in Asia weakened in September, with many trade reliant economies seeing a slump in export orders in a sign that escalating US-China tensions are taking a toll on business confidence.
Rising raw material costs are also squeezing profit margins for Asian manufacturers, raising questions of future investment and reinforcing views that global economic growth is shifting into lower gear.
Business surveys released on Sunday and Monday pointed to deteriorating conditions across much of the region in September, with gauges of future activity offering little hope for a turnaround in the next few months.
Some of the immediate gloom will be dispelled by news that that the United States and Canada had clinched a last-gasp deal on Sunday to salvage the North American Free Trade Agreement [NAFTA] , removing one of major near-term risk in the global outlook.
But that little to ease concerns in Asia over further signs of cooling in China's economy and the risk of collateral damage for its neighbours as the trade war between Washington and Beijing grinds on.
Two manufacturing surveys from China on Sunday pointed to weakening in the vast manufacturing sector.
A private poll showed factory growth stalled after 15 months of expansion, while an official gauge confirmed the sector was losing steam under the weight of shrinking export orders.
The first major readings on China for September suggest the world's second-largest economy is continuing to lose momentum as domestic demand weakens and US tariffs bite, a combination that is likely to prompt Beijing to roll out more growth-support measures.
However, analysts don't expect additional stimulus to start stablising China's economy until at least early next year.
The honor and serving of the latest Operational Research on Trade Tariffs and Wars continues.
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