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WORLD> Europe
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EU recovery takes time to take root
(Agencies)
Updated: 2009-06-23 22:28 LONDON/BEIJING: A stumble in sentiment punctured hopes of a rapid rebound from recession in the euro zone's services-led economy and the European Union and United States faced off against China in a looming trade dispute over raw materials. Euro zone purchasing managers figures on Tuesday showed a recovery had stalled, although manufacturers fared better as, aided in part by government stimulus measures, they ran down stocks of goods to new lows.
A Chinese central bank official said the country's economy is headed in the right direction and should recover faster than many others'. But the foundations of the rebound were not yet solid, he said, adding his to a chorus of voices cautioning against hopes of a quick upturn. The world economy is struggling to overcome problems stemming from last year's housing and financial market meltdown against a background of continued tight credit conditions, the corporate sector's reluctance to spend and mounting job losses. US Moves US Trade Representative Ron Kirk was expected to launch WTO action against China at a news conference on Tuesday, industry sources said, though his office gave no details. Barack Obama, who has focused his first five months as president on trying to end the recession, was likely to outline plans to create jobs and stem unemployment, which economists expect to hit 10 percent in coming months. In his fourth White House press conference since taking office, the president was expected later on Tuesday to throw his weight behind legislative bids to reform healthcare and cut US greenhouse gas emissions. In the euro zone, surveys hinted that the worst of a dark recession had passed, but that a recovery may well take time to take root. In France consumer spending fell by more than expected in May, underlining concerns about fragile domestic demand, while in Germany a purchasing managers' index showed the rate of contraction in Germany's private sector accelerated in June. |
