Asian manufacturing, led by China and India, is on the upswing as numerous restrictions remain in important U.S. states like California, and the U.K.
Last week’s manufacturing PMI data showed there is a global rebound in activity that continued into September as lockdown restrictions are lifted, primarily in Asia. Manufacturing PMIs have broadly moved higher into expansionary territory globally, and that does include here at home. Improvements in domestic and external demand are the drivers.
Business sentiment in Asia are improving more than they are in any other emerging market, supported by the reopening of India even as the coronavirus case load remains high. Death tolls and hospital rates remain manageable enough to lift restrictions, even as some have argued that India was doing so too soon.
Strong demand for goods from China, either on the export side, or from local demand, is helping with the global recovery story. China will be the only G20 nation to post positive GDP numbers at year’s end, according to the Organization for Economic Cooperation and Development.
Continuing improvement in new orders, boosted by pent-up demand, low inventory levels and a recovery in international trade, should help keep that momentum in manufacturing for the rest of the year, says