Asian factory blues remain, exports plunge

By IVCPOST Staff Reporter

Jul 01, 2013 07:11 AM EDT

In June, Asian factories were knocked by stronger headwinds. China's foreign and domestic demands collapsed to multi-months low. Also, for the first time in over four years, orders for Indian producers declined.

Last month's official purchasing managers' index (PMI) of China exhibited a halt in factory growth. A private survey also showed stall in the manufacturing activity which was expected to last for nine months.

The struggle to increase sales for the world's factory floor remains. Manufacturers face belt-tightening by customers in Europe and the United States.

Xianfang Ren, an economist at IHS, said "The Chinese economy is far from out of the woods yet."

While talking about the signs of the decrease in demand, Ren remarked, "A few sub-indicators of the PMI have long indicated that the economy is in sharp distress." He referred to the stocks of purchases and input values as the factors to consider since they have both shrank.

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