Coronavirus: Asia’s manufacturing hubs face ‘tougher times ahead’, even after dreadful March
Parts of Asia and Europe were drenched in a bloodbath of manufacturing data on Wednesday, but economists warned that an even greater pummelling lies ahead, as the coronavirus pandemic paralyses global demand.
Surveys released on Wednesday painted a dire picture of some of the world’s key
manufacturing hubs, while tumbling sentiment in the Eurozone, home to many companies sourcing parts from East Asia, laid bare the demand shock facing the region.
“It is very clear that we have a demand shock and supply shock simultaneously, but demand shocks are likely to become stronger in the coming months as Asia’s top customers, Europe and the US, are affected by measures to contain the virus,” said Trinh Nguyen, senior emerging Asia economist at Natixis.
“In other words, the sub-components foreshadow tougher times ahead for Asian manufacturers in quarter two of 2020, as they face a world with suppressed demand.”