Global Factory Output Slumps As Weak Demand Weighs

Global factory activity slumps as demand weakens in China and Europe, clouding the outlook for exporters. Eurozone manufacturing contracts faster than expected, squeezed by ECB policy tightening, while Britain’s decline steepens. Factory activity in Japan and South Korea contracts, hindering Asia’s economic recovery. Data suggests a further contraction in the United States. Overall, the manufacturing sector remains bleak, with no signs of rebound this year, according to economists. The downturn is broad-based, affecting major economies. China’s weak rebound and the anticipation of aggressive interest rate hikes in the US and Europe add to the pain.