Manufacturers in three of the world’s largest economies reported stronger activity and healthier order books in October, sending stock markets higher on hopes that the global recovery is based on firm foundations.
Economists, who had been expecting indicators of manufacturing output to slow, were confounded by an improving outlook in the US, China and the UK.
These initial indicators of a positive start to the fourth quarter are unlikely to be sufficient to prevent the Federal Reserve from pumping money into the economy on Wednesday, in a second round of quantitative easing aimed at boosting the US growth rate further.
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