The latest data in the CNBC Supply Chain Heat Map shows China is losing more manufacturing to Vietnam, Malaysia, Bangladesh, India, and Taiwan. Exports in furniture, apparel, footwear, travel goods and handbags, minerals, and science and technology are all declining. China’s ‘Zero Covid’ policy is a big factor, with Port of Ningbo, the world’s largest port, the latest to be impacted. [China, 'factory of the world,' is losing its manufacturing ... - CNBC]
The effect of the pandemic in China, where the intransigent "zero Covid" containment policy imposed in an authoritarian way by the Beijing government continues, is particularly heavy for retail chains. A Reuters dispatch reports that sales fell 0.5%, against expectations of a 1.0% increase and compared to a 2.5% increase in September. On the other hand, the country is missing its annual growth target of 5.5%. A Reuters poll predicts growth of only 3.2% in 2022.
The S&P Global Vietnam Manufacturing PMI slipped to 50.6 in October 2022 from 52.5 in September. The latest result pointed to the 13th straight month of growth in factory activity but the softest in the sequence. New orders rose the least since October 2021, output growth was at a three-month low, and export orders moderated. [Source: Markit Economics]
China’s stock markets are rising again on rumors that the country may loosen its zero-COVID policy. But no official confirmation has come through. COVID-19 cases hit their highest level since May today, and senior Chinese virologists are concerned about a winter wave driven by a combination of COVID-19 and the flu.
India's textile and leather industries, with a negative growth of 12.2%, are among the hardest hit sectors according to the August Index of Industrial Production (IIP). Industrial production in India fell 0.8% in August. August's IIP numbers were the lowest in 18 months. The previous low in IIP growth was a 3.2% contraction recorded in February 2021. By July 2022, the PII had increased by 2.2%. By August 2021, the IIP had increased by as much as 13%. (Read more at: economictimes.indiatimes)
While we read in @dailystarnews1 that the Government of Bangladesh estimates a lower growth in exports due to insignificant progress in the diversification of products and markets, and for global turbulence, we go to the site DailyIndustruy.news2 to verify the crisis of tanneries, considered the main cause of environmental and river pollution, to which the Department of environment does not grant new authorizations for the management of solid and liquid waste of the much-discussed industrial park of Savar, forcing them to close. [1) Govt targets lower export growth for global turmoil – Daily Star; 2) Hide traders facing uncertainty – dailyindustry.news]
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