World factory activity weakens on global slowdown, cost pressures

Global factory output mostly weakened in September as slowing demand added to the pain from persistent cost pressures and tighter monetary policy, surveys showed on Monday, diminishing economic recovery prospects.

The data clouds the outlook for a sustained recovery from the Covid-19 pandemic and could add to concerns of a global slowdown as major central banks embark on the most aggressive round of interest rate rises in decades to tame soaring inflation.

Those hikes have stoked fears of a sharp downturn in global demand that had underpinned exports.

Manufacturing activity across the euro zone declined further last month as a growing cost of