Manufacturing indexes from Asia to Europe fell in July as demand weakened and the global recovery from recession lost momentum.
UK, Russian and Australian manufacturing shrank last month, while the pace of factory growth slowed in Europe and China, according to surveys on Monday. A report later on Monday may show manufacturing in the US, the world’s largest economy, expanded at a slower rate, even after the dollar’s 7 per cent drop against the euro this year.
Europe’s debt crisis, US political haggling over the nation’s debt limit and monetary tightening in China have combined to restrain the global recovery. Consumer confidence is being undermined by job cuts and government austerity measures, while manufacturers may also struggle to recover as soaring commodity prices weigh on margins. “Manufacturing is slowing and some of these readings are in recessionary territory,” said David Owen, chief European economist at Jefferies International in London.