Global factory activity grows on AI boom
Factory activity across Europe and Asia expanded last month driven by strong demand for artificial intelligence goods. However rising inflation and higher borrowing costs continue to weigh on the broader outlook.
Insights:
Global factory activity expanded through the overnight hours into Thursday morning, driven by an artificial intelligence spending boom even as energy price shocks from the Iran conflict persisted. The expansion pushed key manufacturing indices higher across major industrial economies. Rising price pressures have prompted central banks like the Federal Reserve and ECB to hike interest rates, tightening borrowing conditions.
