Eurozone Factory Revival Amid Global Trade Woes

In a significant development, Eurozone factory activity expanded for the first time since mid-2022, fuelled by strong domestic demand despite the adverse impact of U.S. trade tariffs, as revealed by private surveys on Monday.

While Greece and Spain led the charge in factory growth, Germany saw a slower pace of shrinkage, indicating a fragile but real recovery. The HCOB Eurozone Manufacturing PMI stood at 50.7 in August, marking an over-three-year high, while the PMI for Europe's largest economy, Germany, reached a 38-month high of 49.8.

Conversely, Asian powerhouse economies like Japan, South Korea, and Taiwan continued to struggle with shrinking manufacturing activity due to the high U.S. trade barriers and competition from cheaper Chinese exports. Notably, the S&P Global Japan Manufacturing PMI stayed below the growth threshold at 49.7.

(With inputs from agencies.)