Global economy shows little sign of recovery

The signals from bellwether economies such as China, Germany and the United States herald strong headwinds against a global recovery; worse, they suggest it will be harder for policymakers to carry out their restructuring agenda.

Growth in China's factory sector weakened in April as the flash HSBC Purchasing Managers' Index fell to 50.5 in April from 51.6 in March, although it remained higher than February's reading of 50.4, the dividing line between expansion and contraction is 50. Germany, the leading European economy saw its manufacturing PMI drop to 47.9 in April from 49 in March, the lowest level in four months, while the Markit Flash US Manufacturers Purchasing Managers' Index fell to 52, its lowest level in six months.

The disappointing data from the top three economies have added to the global growth uncertainties and dampened the optimism of global financial markets.