Factories Struggling as Supply Constraints Hit, Costs Rise

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

LONDON/TOKYO—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.