China, Europe Manufacturing Slows

Pressure increases on policy makers to delay further rate increases.

Manufacturing growth is slowing from China to Europe, creating a dilemma for central bankers considering higher interest rates to combat inflation.

China’s factory index fell to the lowest level since February 2009, while in the 17-nation euro area, a gauge slipped to an 18-month low. German manufacturing expanded at the weakest pace in 17 months, while Italy, Ireland, Spain and Greece contracted. In the U.K. and India, output growth also slowed.

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