Firms report easing coronavirus supply chain disruptions in South China – Survey

Dhwani Mehta FXStreet

According to a survey conducted by the American Chamber of Commerce in South China, a majority of the companies said that the supply chain disruptions due to the coronavirus pandemic-imposed lockdowns have eased, the South China Morning Post (SCMP) reports.

Key findings

“More than 78% of the 172 companies said they had no supply chain difficulties, an increase of 46% since March. Of the 22% of respondents that were still experiencing supply chain disruptions.”

“Some 46% said it was because of problems in transport and logistics, according to the survey of US, Chinese and other multinational firms conducted between August 28 and September 8.”

“Fully 46% of companies reported a drop in revenue in their Chinese operations in the first half of 2020. “

Market reaction

Despite the optimism from the Chinese companies, the sentiment remains tepid amid growing virus cases in the Old Continent.

S&P 500 futures shed 0.20% while the Asian equities reported moderate losses, tracking the sell-off in Wall Street overnight.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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