Global factories kick off 2018 on strong note, but inflation missing

Hong Kong

ASIA'S factories got off to a strong start in 2018, with manufacturing activity in many countries gaining momentum and hitting multi-year highs as global demand for high-tech products remained strong.

Business surveys in Europe and the United States on Thursday showed solid factory activity, reinforcing expectations of another year of synchronised global growth that has propelled stock markets to record highs.

A Purchasing Managers' Index for the eurozone sector slipped to 59.6 - matching a previous flash estimate - from 60.6 in December, IHS Markit said on Thursday. Companies raised selling prices by the most in almost seven years, partially due to a steep increase in energy costs, the London-based company said. Solid global trade, a recovering labour market and monetary stimulus from the European Central Bank are all supporting the currency bloc's economy, which expanded last year by the most in a decade. While inflation so far has remained muted, policymakers have expressed confidence that price growth will …