Chinese factories face headwinds in July, Europe withstands Greek turmoil

London

ECONOMIC headwinds facing Chinese manufacturers intensified last month, with conditions deteriorating to their weakest level in two years, while eurozone factories largely shrugged off Greece's brush with bankruptcy. US manufacturing sector slowed down last month.

July was a fraught month for the global economy, with Athens and its creditors taking debt talks to the brink, while Chinese ructions triggered slides in commodity prices - hitting countries reliant on demand from the world's second biggest economy.

China's factory activity shrank more than initially estimated in July as new orders fell, dashing hopes the economy may be steadying, a private survey showed on Monday.

On Monday, the final Caixin/Markit China Manufacturing PMI came in at 47.8 in July, from 49.4 in June. A similar official survey at the weekend was also weaker than expected, suggesting growth…