Asia’s factories reflect North-South divide as Delta spreads

MANILA (Bloomberg) -- Manufacturing managers in Southeast Asia saw a slump in activity as the region grapples with one of the world’s worst Covid-19 outbreaks, while North Asia continued to see a pick up as the global economy recovers.

In Southeast Asia, which has emerged as one of the world’s worst-hit pandemic areas in recent weeks, Indonesia’s IHS Markit manufacturing Purchasing Managers Index plunged to 40.1 from 53.5, its worst reading in 13 months. Thailand’s fell to 48.7 from 49.5 -- shrinking for a third consecutive month -- while Malaysia’s reading hovered at 40.1 from June’s 39.9, and Vietnam’s PMI stayed in contractionary territory at 45.1 from 44.1.