A sharp slowdown in factory activity growth in China raised new fears over a global recovery. However, manufacturing activity rose in Japan and South Korea
Business surveys on Monday highlighted the divergence in the global economy on the pace of recovery from the pandemic, which led the International Monetary Fund to downgrade this year's growth forecast for emerging Asia.Although manufacturers largely remained open throughout lockdowns, the loosening of some restrictions designed to limit infections has driven a flurry of demand - but factories are suffering from staff shortages and supply chain problems.
IHS Markit's final manufacturing Purchasing Managers' Index for the euro zone dipped from June's record high but was still firmly in growth territory. Once seen as a driver of global growth, Asia's emerging economies are lagging their advanced peers in recovering from the pandemic's pain as delays in vaccine rollouts hurt domestic demand and countries reliant on tourism.
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