Tariff Risks Cloud Factory Outlook Across the Globe

Eurozone stabilises, index still below 50

- REUTERS

Worries over future US tariffs are clouding the outlook for factories across much of Asia and Europe, according to surveys released on Tuesday which nonetheless showed some were able to shrug off the uncertainty and keep growing.

Among the bright spots, Japan's manufacturing read-out showed growth for the first time in 13 months, South Korea's activity contracted at a milder pace and China's Caixin PMI index also expanded in June — confounding an official survey that showed activity shrinking for a third straight month.

In Europe, Ireland, Spain and the Netherlands were among the star performers even as the wider euro zone read-out was broadly flat and Britain continued to contract, albeit more slowly.