Asia Export Machine Cracks Wide Open; Global Recession Call Revisited

It's not just Chinese manufacturers that are struggling. It is also Japan, South Korea, and Taiwan. In other words, the Asian export machine has cracked wide open.

South Korea

The Markit South Korea Manufacturing PMI® shows Production Falls at Fastest Rate in Eight Months.

Key points

• New orders contract at sharp rate
• New export orders decrease for third month running
• Falling output prices signalled

Summary

Output contracted at the fastest pace in eight months amid reports of a strike in the auto sector. Moreover, respondents stated that the global recession had adversely affected production. Total new business fell and, although sharp, the rate of contraction was slower than in July. New export business also decreased, though at a slight rate. Panellists stated that weaker domestic demand and a downturn in the global economy had both fed through to the latest contraction in order book volumes

Purchasing activity at manufacturing firms in South Korea decreased for the third successive month in August. The rate of contraction was solid, but eased from that recorded in July.

Key points

• New orders and new export orders fall for third month running
• Workforces contract slightly
• Input and output prices fall in line with weaker demand