Manufacturing Decline in Asia and Europe

Manufacturing indicators, which are closely monitored in Europe and Asia, declined due to the war in Ukraine and the slowdown in the Chinese economy. This weakening in manufacturing activity in the world's leading trade centers is felt as inflation pressure on households.

According to S&P Global analysis, the manufacturing PMI Index in the 19-member Eurozone declined from 49.8 to 49.6 in August due to rising energy costs and declining demand. This was recorded as the lowest level since June 2020. An index value below 50 indicates that the sector is contracting. Weakest figures in Germany and Italy in 26 months On the Asian front, the PMI index in Taiwan reached its lowest level since May 2020 with 42.7 and in South Korea since July 2020 with 47.6. Although the index also declined in Japan, it remained above the growth zone of 50. According to these data, it is noted that uncertainties in the global economy have peaked. S&P Global Economist Chris Williamson said in his assessment of the situation: "Forward-looking indicators suggest that an economic slowdown is likely in the coming months. In other words, the risk of recession is increasing." Unofficial manufacturing PMI data released today in China contracted in August due to the impact of lockdowns and power outages. The official manufacturing PMI data in the country increased from 49 to 49.4. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!