Decline in Global Factory Activity Eases #infographic

Decline in Global Factory Activity Eases
Factories around the world shut down as demand for production decreased and employees stayed at home due to COVID-19 restrictions. Now, new indices measuring manufacturing production are showing signs that recovery may begin in some of the world's top industrial countries.

A number of indices calculated by IHS Markit, Caixin and Jibun Bank in Japan, Italy, Germany and the United States all showed positive gains in manufacturing after a tough start to 2020. China, the first nation to gain momentum by restricting the spread of COVID-19 in their nation, crossed the expansion threshold with an IHS index above 50 in May, but missed the significant mark again in June. Countries that felt the brunt of COVID-19 later than China, such as Italy, Germany and the United States, are finally experiencing growth, but are still in the contraction zone.

Japan, on the other hand, continues to sink into a deeper recession, and manufacturing continues to decline negatively. In June, Jibun Bank PMI reached 37.8 index points – an 11-year low.

The US also had an 11-year low in manufacturing production in April, and although the uptick in manufacturing points to a potential rebound, many analysts expect a long way to go before the harm done by the COVID-19 lockdowns is reversed. June figures point to continued growth, but continuing protests over racial inequality and police brutality, along with increasing COVID-19 incidents, may further slow down economic recovery as companies refuse to open up.

Decline in Global Factory Activity Eases #infographic

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