On Monday, China's Caixin Markit survey report for factory activities had revealed that the Asian business activities had been recovering from the pandemic-induced slump much-faster than anticipated as a cataclysmic outlook in Asia’s factory activity continues to brighten up in July with shrinkage slowing down in a number of export-reliant Asian economies, suggesting that the region’s manufacturing activity has been steadily bouncing back following the apocalyptic hit of the pandemic outbreak.
Aside from that, adding to investors’ optimism, manufacturing activity in China had grown at the fastest pace in more than a decade last month as domestic demands had improved radically, hinting that the world’s second-largest economy might just have emerged from the pandemic’s blow to the growth outlook.
China’s Caixin Markit Manufacturing PMI posts third consecutive month of gain
In point of fact, apart from the private survey data revealing China’s factory activity had stepped up at its fastest pace in more than a decade, China’s Caixin Manufacturing PMI (Purchasing Managers’ Index) data revealed earlier on the day had shown that the index leapt to 52.8 from a reading of 51.2 a month earlier, remarking the index’s third consecutive month of gain.
Apart from an upbeat factory activity in China over the recent months, manufacturing activity findings in Japan and S. Korea had also witnessed a slowdown in contraction, pointing towards a mitigation of pressures for the manufacturers, while several analysts were quoted saying that the worst fallouts of the pandemic outbreak might just have been over.
Nonetheless, reflecting on the flipside of the coin, some analysts had expressed frets over a second wave of pandemic outbreak which would likely to keep the Asia’s factory activity feeble despite an intransigent response from Chinese economy, while citing that a pandemic resurgence would weigh heavily on domestic and overseas investments, a senior economist at Oxford Economics, Stefan Angrick said following reveal of China’s Caixin Manufacturing PMI data, “With the pace of recovery slowing in some of Japan’s key trading partners, exports and business spending are likely to continue to struggle. ”