Euro zone manufacturing activity gradually expanded. Its first growth since early 2019 and Asia’s pain eased as the contraction, slowed export-reliant nations and added hope to the sector, emerging from the hit of the coronavirus pandemic. The coronavirus infections showing no signs of stopping or slowing down, and the risk of renewed lockdowns increasing – the chances of any rebound reversing course have risen, and the world economic outlook has dimmed again, according to Reuters polls of over 500 economists globally.
Factories appear to be playing their part in the bloc’s potential recovery, and IHS Markit’s final Manufacturing Purchasing Managers’ Index bounced to 51.8 in July for the euro zone from June’s 47.4 – its first time above the 50 mark separating growth from contraction since January 2019. Manufacturers in Germany, Europe’s largest economy, saw an expansion for the first time since December 2018 and in France activity picked up a touch. While in Britain, manufacturing output grew at its fastest pace in nearly three years as factories reopened and demand began to accelerate after a lockdown was eased.