Surveys of thousands of factories across the world were realeased on Wednesday, showing activity in the 17-nation Eurozone has declined for the eleventh straight month in July.
Purchasing Managers Indexes (PMIs) indicate that not only did the decline in manufacturing worsen in Italy, Spain and Greece, but also in the two regions forming the biggest economies in the Eurozone, France and Germany. Britain’s PMI plummeted to a more than three year low.
Despite being resilient to the effects of recession until recently, export orders and output were weak in India and China, Asia’s biggest economies.
China’s official factory PMI has fallen to 50.1 in July, an eight month low, whereas the HSBC China PMI rose to its highest level since February, to 49.3, however staying below 50 for the ninth straight month.
The effects of cooling demand in Europe were evident across Asian markets, with South Korea suffering its worst decline in manufacturing activity in seven months, and India showing the sharpest one month drop in growth since September.