Euro zone manufacturing activity accelerated in August, clocking the fastest rise in export orders since February 2011 despite a strengthening currency - and Asian factories cranked up production amid strong demand. Ciara Lee asks whether worries over a global slowdown have now all but evaporated.
Global demand is still hot Factories across Asia and Europe cranked up production last month. Chinese manufacturing activity accelerated to a six-month high, And new business grew at the strongest pace in more than three years. China's industrial sector appears to be prospering from a year-long, government-led building boom. Economists had expected growth rates to ease. (SOUNDBITE) (English) BGC MARKET STRATEGIST, MIKE INGRAM, SAYING: "I n terms like of a sudden vertiginous hard landing, I don't think that's on the cards certainly not yet. That's that's certainly supported by the most recent PMI data." Manufacturing also expanded solidly in the world's No.3 economy, Japan as domestic and export orders picked up. The euro zone continued to clock strong results, adding fuel to the argument for an expected rollback of monetary stimulus. IHS Markit's Manufacturing Index rose to 57.4 in August Well above the 50 level that separates growth from contraction. (SOUNDBITE) (English) BGC MARKET STRATEGIST, MIKE INGRAM, SAYING: "It's very likely that overall we're going to be see growth in the eurozone as a whole top 2 percent. So a very, very decent result. And of course you know part of that has been reflected in the performance of the euro. Over the second quarter we saw it on a trade-weighted basis appreciate by about 4 percent. Over the third quarter we've seen another two and a half percent there." Even British factories grew more strongly than expected. Suggesting Britain's economy might be picking up speed after a slow first half of 2017 Manufacturing accounts for only around 10 percent of the British economy The government though hoping it will grow on the back of the fall in the value of sterling since last year's Brexit vote.