Economics

Factories Offer Mixed Omens for Global Growth as Year Begins

Purchasing manager indexes from China to Germany declined
Gauge of U.S. factories rose in January from a two-year low

Frans Van Houten, Philips CEO, discusses a share buyback and the U.S. trade dispute with China. Daybreak: Europe." (Source: Bloomberg)

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By Fergal O'Brien

February 1, 2019 at 11:59 AM UTC

Updated on

February 1, 2019 at 4:19 PM UTC

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Stabilization of the global economy remained mixed at the start of 2019, with countries across Asia and Europe reporting further weakness in manufacturing as American factories showed signs of improvement.

Purchasing manager indexes from China to Australia, South Korea, the U.K., Italy and Germany all declined in January. The Chinese number dropped to 48.3 from 49.7, moving further below the key 50 level that signifies expansion to its worst reading since 2016. The Institute for Supply Management’s index for U.S. factories unexpectedly rose to 56.6, rebounding after the steepest drop in a decade, data showed Friday.