Friday 1 July 2016

Asian factories struggle, Brexit throws up new threats

China's vast factory sector flatlined in June as exports shrank and jobs were cut, a worrying trend evident across Asia that argues for yet more policy stimulus as doubts gather over the potency of measures taken so far.

The hard times signalled by a range of surveys was not what the world needed a week after Britain's vote to leave the European Union condemned that bloc to months, if not years, of political and economic instability.

Most of the responses from manufacturers also preceded the Brexit vote, suggesting July could be even tougher.

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