Factories fettered by trade wars, faltering demand in August

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Factories fettered by trade wars, faltering demand in August
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The bitter trade war between China and the United States kept global factory act...

LONDON/TOKYO - The bitter trade war between China and the United States kept global factory activity largely in decline in August, business surveys showed, strengthening the case for policymakers to unleash fresh stimulus to fend off recession risks.

IHS Markit’s August final manufacturing Purchasing Managers’ Index was 47.0, matching an earlier flash reading but well below the 50 level separating growth from contraction.In one brighter spot, as it is less dependent on exports than other euro zone countries, France’s economy has so far proved more impervious to a slowdown and factory activity returned to growth as manufacturers saw output and client demand pick up.

A similar survey due later from the United States is expected to show slowing manufacturing growth in the world’s largest economy. In China, the Caixin/Markit Manufacturing PMI for August rose to a five-month high of 50.4 from 49.9 in July, beating a median market forecast.

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