By Simone Meier – Jun 21, 2012
Euro-area manufacturing output shrank at the fastest pace in three years in June and a Chinese output gauge indicated contraction as Europe’s worsening fiscal crisis clouded global economic-growth prospects.
A gauge of euro-region manufacturing fell to 44.8 from 45.1 in May, London-based Markit Economics said today in an initial estimate. That’s the lowest in 36 months. The preliminary reading was 48.1 for a Chinese purchasing managers’ index from HSBC Holdings Plc and Markit. A reading below 50 indicates contraction.
The euro area’s turmoil is undermining global growth by eroding confidence of investors and consumers as companies step up job cuts. Manufacturing in the U.S. probably expanded at a weaker pace in June, a Bloomberg News survey shows. While Greece’s Antonis Samaras was sworn in as prime minister with a coalition that will seek relief from austerity measures, Group of 20 leaders this week pushed Europe to step up measures that might contain the crisis.