Global factory slump from Ireland to Japan reflects strain of rate increases on demand  

Japan, South Korea, Taiwan and Vietnam saw manufacturing activity contract in July, surveys showed, highlighting the strain sluggish Chinese demand is inflicting on the region. Picture: PA

Global factory activity from Ireland to Germany and Japan remained in a slump in July, surveys showed, a sign slowing growth and weaknesses in China were taking a toll on the world economy, though the picture in the Americas was notably less bleak than elsewhere.

The downturn highlighted the dilemma for policymakers who embarked on aggressive rate hikes in a battle to keep inflation at bay, and yet also need to try and forestall potential recessions.