Global factories parched for demand, need stimulus

London

JANUARY surveys of global factory activity released on Monday showed the new year began much as the old one ended - with too much capacity chasing too little demand.

Manufacturing in the US shrank in January for a fourth consecutive month as businesses cut staffing plans. The 48.2 reading for the Institute for Supply Management's index followed December's 48 level that was the weakest since June 2009. Factories are buffeted by persistent weakness in the oil industry, the stronger dollar and cooling overseas markets that also limited growth last quarter. The report showed the gauge of new orders, a leading signal for production, grew for the first time in three months, which would help manufacturing eventually strengthen.