Disappointing growth in manufacturing as stimulus fails to spur

London

MASSIVE monetary stimulus from Chinese and European central banks has done little to spur factory growth, moving a debate over more easing up the agenda and raising doubts over whether US interest rates will rise this year.

A crop of industry surveys out on Monday pointed to October as another subdued month. Activity in China's colossal factory sector shrank as global demand stuttered while euro zone factories again resorted to slashing prices to drum up trade.

"We do think there is more easing to come in China. They are in the midst of a long-running easing cycle that is probably going to go on until late next year," said Andrew Kenningham at Capital Economics. "The ECB is likely to announce something further in December. The concerns there are not so much about growth but about…