Tianjin disaster to hit August data, but impact transitory

Economic activity in Tianjin has yet to return to normal several days after the devastating explosions there. The city is a major industrial centre and the world’s tenth largest port. While most of the port has remained in operation, damage to warehousing and factory facilities has been severe. In addition, road closures have interrupted the usual flow of goods to and from the port and surrounding area. The disruption is likely to spread along supply chains. Still, the economic damage at the national level will be both transitory and small. Many companies have announced plans to resume production. If disruption at the port drags on, firms should be able to re-route their cargo to the similarly-large nearby ports of Qingdao and Dalian.