Factories around the globe have extended a manufacturing revival as activity picked up steam in February. But, as David Pollard reports, the outlook for many export-reliant economies remains uncertain in the wake of President Donald Trump's protectionist stance.
New cars, new markets. Unveiled this week, the DS7 Crossback is manufactured in both France - and China. The PSA group aiming to put the brake on a four-year decline in global sales - just as global manufacturing goes up a gear, according to the latest PMI readings. (SOUNDBITE) (English) CITI EUROPEAN ECONOMIST, CHRISTIAN SCHULZ, SAYING: "It seems that things are picking up again ... And that then also benefits the global capex cycle, and that's especially in the advanced world, in the Germanys and so on of this world, that's really what's driving the PMIs." But if that's the good news, this potentially is the bad. Donald Trump's protectionist rhetoric - even if that for once took a back seat to a more conciliatory tone when he addressed Congress on Tuesday. Economists still worried over a US that's pulled out of the Trans Pacific Partnership - and threatens to reshape NAFTA. (SOUNDBITE) (English) CITI EUROPEAN ECONOMIST, CHRISTIAN SCHULZ, SAYING: "These issues are clearly still on the table. And while perhaps the rhetoric isn't quite as bold as it was in the beginning of this presidency, I don't think the underlying issues have gone away." New orders are up strongly - but so too are input price pressures. One talking point for ECB policymakers as they mull over what this week's policy decision will be. (SOUNDBITE) (English) CITI EUROPEAN ECONOMIST, CHRISTIAN SCHULZ, SAYING: "In terms of message, I think the ECB would remain on the cautious side, highlighting that the recovery, while stronger, still remains fragile." But for now the road is smooth. China's factories expanding for a seventh consecutive month. Euro zone manufacturing putting in its best performance in almost six years. Both well clear of the 50 level that signifies growth.