Economics
European Factories Brace for Economic Rebound to Falter
- Asia, Europe factories continued to cut employment in August
- Euro-area inflation rate below zero for first time since 2016
An employee monitors the production line at a medical glassware factory in Buende, Germany.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
European manufacturers aren’t getting carried away by the recent rebound in activity and are trying to save money wherever possible to be prepared for another shock.
Companies cut jobs again in August, and reduced inventories of raw materials and semi-manufactured stocks instead of ordering supplies, according to IHS Markit. It’s a similar story in Asia, where factory employment declined in Japan, South Korea and Taiwan.