Factories prove economic momentum will carry through to second half
London/Hong Kong — Factories across the world powered into July, providing evidence that economic momentum has carried through into the second half despite central banks in the West preparing to start scaling back years of massive stimulus. Growth in the eurozone remained buoyant, British manufacturing recovered in July from a seven-month low and Chinese factory activity unexpectedly expanded. A survey due later from the US is expected to suggest factories chugged along at a slightly more modest, but still solid, pace. "The world economy was doing quite well in the second quarter and nothing has changed in July. The overall picture is pretty healthy," said Andrew Kenningham at Capital Economics. "There is nothing immediately on the horizon to cause the global economy generally to slow. Central banks are moving very slowly to remove stimulus — but it is very slow and cautious so I don’t think it will cause any problems." China and the eurozone are key to the second-half outlook, with...
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