Asia factories slump as global demand fades By Enda Curran & Claire Jiao
A
THE WORLD ›› A7
NORTH KOREA WARNS US OF ‘POWERFUL’ RESPONSE TO JOINT MILITARY EXERCISES
SIA’S factories slumped in October as global demand for merchandise goods made in the region continues to weaken. The slowdown in Asia adds to growing evidence that a pronounced deceleration in world trade is underway as soaring inflation and interest rates crimp consumer spending in the US and Europe. South Korea
recorded its first decline in exports in two years in October, among the clearest signals yet that the global economy is cooling. Korea’s trade data came as purchasing managers indexes laid bare the scope of the decline. Taiwan’s slump was a standout, with the S&P Global manufacturing purchasing managers’ index dropping to 41.5 in October from 42.2 in September to mark its weakest reading since January 2009.
Falling customer orders and demand are accelerating the decline for Taiwan’s factories, which are trimming production in response. “Weak domestic and international demand conditions were the main drag on the headline figure with the rate of decline in new orders the sharpest since the initial phase of the Covid-19 pandemic in May 2020,” Shreeya Patel, economist at S&P Global Market Intelligence, said in a statement. Japan’s manufacturing gauge
slipped to 50.7 from 50.8. South Korea’s PMI rose to 48.2 from 47.3, still its fourth consecutive month of contraction. The nation also reported its first exports decline in two years on Tuesday, in yet another sign that the global economy is cooling. A reading above 50 indicates expansion from the previous month, while anything below denotes contraction. See “Factories,” A2
BusinessMirror A broader look at today’s business
www.businessmirror.com.ph
Wednesday, November 2, 2022 Vol. 18 No. 21
FOOD MANUFACTURERS SEEK DTI PRICE-HIKE OK n
P25.00 nationwide | 2 sections 18 pages | 7 DAYS A WEEK
RESCUERS continue their search for missing bodies at Barangay Kusiong, Datu Odin Sinsuat, Maguindanao province, on Monday. More than 100 people have died in one of the most destructive storms to lash the Philippines this year with dozens more feared missing after villagers fled in the wrong direction and got buried in a boulder-laden mudslide. At least 53 of 105 people who died—mostly in flash floods and landslides—were from Maguindanao province in a Muslim autonomous region, which was swamped by unusually heavy rains set off by tropical storm Paeng. Stories on Paeng’s aftermath, on page A3. PHILIPPINE COAST GUARD VIA AP
T
Central banks urged to set up digital currencies for inclusion
By Andrea E. San Juan
HE Department of Trade and Industry (DTI) said it has received price-increase requests from canned goods, milk, coffee, and bread manufacturers.
“We have petitions for canned meat, for instance. For canned meat, note that that’s a prime commodity so in case of a price freeze, they are not included because they are prime but we have petitions for
canned sardines, for milk, coffee, and bread, which [are] of course part of our basic necessities,” DTI-Consumer Protection Group See “Price-hike,” A2
By Cai U. Ordinario @caiordinario
C PRESIDENT Ferdinand R. Marcos Jr. conducts an aerial inspection of Maguindanao areas that were affected by tropical storm Paeng. OFFICE OF THE PRESS SECRETARY TWITTER ACCOUNT
EN T R A L ba n k s shou ld consider digital currencies which could improve financial inclusion efforts in countries, according to the Asian Development Bank (ADB). In an Asian Development Blog, ADB South Asia Department’s Lotte Schou-Zibell said central bank currencies are issued and regulated by governments and
can serve unbanked and underbanked populations. T h e s e d i g it a l c u r r e n c i e s , Schou-Zibell said, are less risky compa red to d ig it a l c u r re n c ies suc h a s Bitcoin or Et her bec au se Cent ra l B a n k s bac k t hese currencies. “It is time for central banks also in developing countries to explore and better understand central bank digital currencies in See “Digital currencies,” A2
PESO EXCHANGE RATES n US 58.2880 n JAPAN 0.3984 n UK 67.4450 n HK 7.4260 n CHINA 8.0686 n SINGAPORE 41.3566 n AUSTRALIA 37.6132 n EU 58.1073 n KOREA 0.0410 n SAUDI ARABIA 15.5207 Source:
BSP (28 October 2022)