China39;s private PMI unexpectedly picks up in August
China rebound may be sign official efforts bearing fruit

LONDONTOKYO, Sept 1 Reuters A downturn in euro zone manufacturing eased last month, suggesting the worst may be over for the bloc39;s beleaguered factories, while an unexpected rebound in China offered some hope for exportreliant economies, private surveys showed.

However, Europe39;s largest economy Germany remained a negative outlier among the continent39;s big players, and factory activity weakened in much of Asia as manufacturers there felt the pinch from rising input costs and slowing global demand.

Central banks have aggressively raised interest rates to rein in steep inflation but are likely at or nearing the end of tightening cycles as they await the feedthrough and look to cushion the blow to their economies from sluggish global demand.

HCOB39;s final euro zone manufacturing Purchasing Managers39; Index PMI, compiled by SP Global, rose to a threemonth high of 43.5 in August from July39;s 42.7, albeit below a preliminary reading of 43.7. A reading below 50 marks a contraction in activity.

An index measuring output, which feeds into a composite PMI due on Tuesday and seen as a good gauge of economic health, rose to 43.4 from 42.7.

We are now in a better position than many had anticipated given how high interest rates have risen and how quickly. But it is very uneven, said Craig Erlam at OANDA.

It gives the European Central Bank pause for thought…