Factories struggling as supply constraints hit, costs rise

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Machinery is seen at a factory specialising in heat treatment on metals, which is out of operation, at an industrial park in Shenyang, Liaoning province, China, September 30, 2021. REUTERS/Tingshu Wang

  • European factories hit by supply chain bottlenecks -PMI
  • Japan’s factory activity grows at slowest pace in 7 months
  • Fallout from China’s slowdown seen weighing on Asian economies

LONDON/TOKYO, Oct 1 (Reuters) – Global manufacturing activity took a big hit from supply chain bottlenecks and escalating costs, exacerbated by pandemic-induced factory shutdowns in Asia and signs of slowing Chinese growth, surveys showed on Friday.

While countries where outbreaks of the Delta coronavirus variant receded saw an improvement in activity, growth shrank in some as chip shortages and supply disruptions impacted those still struggling to shake off the hit from COVID-19.

Euro zone and British manufacturing growth remained strong but activity suffered from logistical issues,…

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