THE world’s factories are powering along, providing vital support for economies as renewed virus restrictions in some countries take a toll on growth.

Indexes of manufacturing activity in the United States, China and parts of Asia improved in November, and Germany saw solid expansion, according to reports Tuesday. In South Korea, exports rose 4 percent, supported by surging demand for tech devices.

The strength of trade activity in recent months is giving a lifeline to the recovery, though the situation remains fragile as the world awaits developments in the race to get a coronavirus vaccine.

That mix of hope and caution is reflected in comments from central bankers, with U.S. Federal Reserve Chair Jerome Powell saying Monday that there are still “significant” challenges ahead.

That was echoed in the latest outlook from the OECD, which cut its 2021 growth forecast to 4.2 percent from 5 percent and called on governments to keep up fiscal support for businesses and households. It warned that a pattern of outbreaks and lockdowns is likely to continue for some time and the risks of permanent damage are rising.

Even within manufacturing, the main engine of the global economy right now, there are signs of weakness. Closures across the hospitality sector have hit consumer goods production, threatening jobs in multiple industries.

According to IHS Markit’s latest surveys, China’s manufacturing index soared to a decade-high in November. A separate official gauge also improved, momentum that’s starting to filter across neighboring trading partners.

For now, China’s strength is also being felt in Europe, where German manufacturers cited demand from the country in their November report. The factory gauge for Germany slipped slightly, but was still the strongest in Europe. That offset renewed weakness in Spain and France.

“The sustained expansion should help to soften the economic blow of COVID-19 restrictions, which have hit the service sector hard,” said Chris Williamson, chief business economist at IHS Markit.

While the euro area is forecast to shrink this quarter, the 2.2 percent decline forecast is far smaller than the near 12 percent slump seen in three months through June.

In the United States, manufacturing showed its strongest expansion since September 2014, bolstered by stronger output and orders, according to the IHS Markit data. (SD-Agencies)