Due to delays in British car orders, chip shortages hit factories in China and Japan-Business Reality | Business

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The global semiconductor shortage is hurting the growth of factories throughout Asia and causing delays in delivering cars to the UK.

Grow in China’s New data shows that the factory fell to a four-month low this month, and supply shortages, supply chain issues and rising raw material costs have all hit manufacturers.

While in Japan, Industrial output value hit the biggest monthly decline in a year 5.9% Compared with the previous month, May was affected by the decline in the automobile and production machinery manufacturing industries.

Autumn is made by a 19.4% Japan’s Ministry of Economy, Trade and Industry (METI) said that the decline in automobile production is mainly due to the supply of semiconductor chips.

As Reuters pointed out, the slowdown of the Japanese auto industry will have a major impact on its economy:

This [5.9%] This is the first decline in three months and is far weaker than the 2.4% drop predicted by Reuters in a survey of economists. After rising 2.9% last month.

Manufacturers of intermediate products such as tires and passenger car electrical lighting are being hit by the decline in motor vehicle production.

China’s official manufacturing purchasing managers’ index (PMI) for June, which tracks activity across the industry, fell to 50.9 From 51.0 May-Approaching the 50-point mark, showing stagnation.

National Bureau of Statistics of ChinaC Senior statistician Zhao Qinghe The warning stated that production was hit by “tight supply of chips, coal and electricity, and equipment maintenance”, adding:

“Factors such as chip shortages have adversely affected the development of the (automotive) industry,”

The outbreak of Covid-19 in the major exporting provinces of Guangdong and major ports in neighboring Shenzhen also caused disruptions.

The National Bureau of Statistics also reported that the growth of Chinese service industry companies has slowed (service industry PMI dropped from 55.2 to 53.5)

For months, companies have been warning that semiconductor shortages are hurting growth, and today’s data highlights this problem.

Jeffrey Halley, senior market analyst for OANDA Asia Pacific, explained:

The story of Chinese consumers saving rather than consuming has been circulating for some time, and it seems to be reflected in the data. Logistics and chips are emerging in the manufacturing industry.

For some time to come, chips and ships will become a problem for the entire world, and it may be that the initial reopening consumer frenzy in the northern hemisphere has eased.

Automakers are scrambling to seize semiconductors and compete with manufacturers of electronics and electronic products-from TVs and mobile phones to cars and game consoles.

PendragonThe British car dealer group said this morning that supply may be affected in the second half of this year, and some orders have been postponed.

Pendragon told the city:

As we enter the second half of fiscal year 21, with the potential further damage of Covid-19, the expected adjustment of used car profit margins, and the risk of limited supply of new and used cars, there is still ongoing uncertainty.

Although the extent of the well-known shortage of semiconductor chips is not yet clear, it is becoming increasingly clear that there may be some supply restrictions in the second half of fiscal year 21, and the time for vehicle ordering has been extended.

Agenda

• 8:55 AM BST: Germany’s June unemployment rate
• 10 am British Summer Time: Eurozone inflation data for June
• Noon: Bank of England Chief Economist Andy Haldane delivered a speech at the Institute of Government on the changes in the central bank over the past 30 years
• 1.15pm BST: June ADP Employment Survey in the United States
• BST 3.30pm: IEA weekly oil inventory data