Consumers, Not Factories, Are Carrying the Global Economy
- Manufacturing PMIs for June disappoint across Europe, US
- Gloom contrasts with reduced forecasts for US recession
Engineers work on an engine at a manufacturing plant in Mlada Boleslav, Czech Republic.
Photographer: Milan Jaros/BloombergThis article is for subscribers only.
The world economy shows increasing signs of cruising on one engine, relying on services for momentum as factories from Japan to the US slow production lines and struggle to clinch orders.
Surveys of manufacturing purchasing managers released Friday signaled contraction across major economies, with the US index hitting its low for the year so far. The euro-area equivalent for June slid more than economists anticipated, to the lowest level in more than three years.