Strain on global manufacturing eases as factories post growth – Gulf Today

Strain on global manufacturing eases as factories post growth – Gulf Today

Labourers work at an assembly line to produce ventilators at a factory in Hanoi, Vietnam on Monday. Reuters



The global manufacturing activity expanded in July, adding to hopes the sector is emerging from the hit of the coronavirus pandemic. Eurozone manufacturing activity expanded modestly last month, its first growth since early 2019, and Asia's pain eased as the contraction slowed in export-reliant nations.

US manufacturing continued to recover in July and demand jumped compared to June but firms are still shedding jobs, according to an industry survey released on Monday.

Just over 18 million people have been infected by the coronavirus and the hit from lockdowns and social distancing policies to contain its spread have had a devastating impact on global growth and pushed many economies into recession.

With still-rising coronavirus infections - 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.

Still, while the eurozone economy contracted a record 12.1% last quarter, a Reuters poll predicted 8.1% growth during the current one.

Factories appear to be playing their part in the bloc's potential recovery, and IHS Markit's