By Leika Kihara

TOKYO, Reuters – Asia’s manufacturing activity declined in September due to signs of slower Chinese growth and the effects of the coronavirus pandemic on its economies. Surveys on Friday showed that this was reflected in a lackluster performance.

In September, factory activity declined in Vietnam and Malaysia, while it grew slowly in Japan, where chip shortages and disruptions to supply added to the region’s woes.

China’s waning economy momentum has been dealt a further blow. The official Purchasing Manager’s Index, (PMI), showed on Thursday that China’s manufacturing activity decreased unexpectedly in September as a result of tighter restrictions on electricity consumption.

The private Caixin/Markit manufacturing PMI did better than anticipated after a slump in August. However, the growing weakness of the second largest economy in the world is affecting the prospects for neighboring Asian countries.

Makoto Said, economist, NLI Research Institute, “While coronavirus restraints on economic activity may gradually be lifted, the slow rate at which this will occur means that Southeast Asian economies are likely to stagnate for most of this year,” he said.

In September, the au Jibun Bank Japan Manufacturing PMI dropped to 51.5 from 52.7. The month before was 52.7. It is now at its slowest rate of growth since February.

“Supply chain disruption continued t dampen activity, demand,” stated Usamah Bhatti of IHS Markit’s PMI survey in Japan.

South Korea’s PMI rose to 52.4 in September from 51.2 August. This is still above the threshold of 50 that signals expansion for a 12-month straight.

Manufacturers’ business optimism has been tempered by continued disruptions in the supply chain.

The PMI in Taiwan fell to 54.7 from 58.5 August. Vietnam’s index was unchanged at 40.2.

Asia was once a major driver of global economic growth. However, Asia’s new emerging economies have been slow to recover from the pain caused by delays in vaccine rollouts. Also, a surge in Delta variant case numbers has hurt factory production and consumption.