TOKYO: Asian factories recovered further in November from the COVID-19 crisis, surveys showed on Tuesday, thanks to a boom in economic powerhouse China which has enabled the region to withstand the pandemic better than many of its peers.
China’s factory activity accelerated at the fastest pace in a decade in November, a private sector survey showed, a sign the world’s second-largest economy is rebounding to pre-pandemic levels.
But a global resurgence in coronavirus infections has made the outlook highly uncertain, keeping governments and central banks under pressure to maintain or ramp up their massive stimulus programmes, analysts say.
PMI surveys for other regions due later on Tuesday are expected to show a continued recovery in factory activity in the euro zone, while the manufacturing activity in the United States is seen expanding but at a slower pace.
“There is little sign that large second waves of the virus in the US and Europe have weighed on Asia’s export-focussed industry, suggesting that external demand will continue to hold up,” Capital Economics said in a research note.
China’s Caixin/Markit Manufacturing Purchasing Managers’ index (PMI) rose to 54.9 from October’s 53.6, marking the highest level since November 2010.
The gauge stayed well above the 50-level that separates growth from contraction for the seventh consecutive month. — Reuters
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