Global Economy further deteriorates

Economic Analysts point out that the global economy is showing signs of deteriorating after manufacturing in the United States contracted in June for the first time in three years, European factories took another hefty blow, and China and Japan are hit hard by crumbling orders from abroad.

Business surveys covering thousands of factories across the world indicate that there will be further troubles ahead for the crisis-stricken Euro Zone and for its trading partners. Joblessness in the currency union rose to a new record high in May, pushed up by lay-offs in France and Spain.

Manufacturing activity in Germany and Spain has contracted at the fastest pace in almost three years. Around 17.56 million people are out of work in the 17-nation euro zone in May, or 11.1 per cent of the working population. This is reported to be the highest since euro area records began in 1995.

Britain’s manufacturing sector has contracted for the second straight month, , doing little to alter expectations that the Bank of England will pump more cash into the struggling economy.

The Economic Analysts say that Europe’s economic ailments have left Asian factories, which rely heavily on demand from rich Western states, reeling in June. (niz)