Strain on global manufacturing eases as euro zone returns to growth

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Euro zone manufacturing activity expanded modestly last month, its first growth since early 2019, and Asia's pain eased as the contraction slowed in export-reliant nations, adding to hopes the sector is emerging from the hit of the coronavirus pandemic.

LONDON/TOKYO - Euro zone manufacturing activity expanded modestly last month, its first growth since early 2019, and Asia’s pain eased as the contraction slowed in export-reliant nations, adding to hopes the sector is emerging from the hit of the coronavirus pandemic.

Still, while the euro zone economy contracted a record 12.1% last quarter, a Reuters poll predicted 8.1% growth during the current one. Manufacturers in Germany, Europe’s largest economy, saw an expansion for the first time since December 2018 and in France activity picked up a touch. But worries about a second wave of infections may weigh on global demand and business sentiment, keeping any rebound in factory output feeble, some analysts say.

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