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Global Factory Revival in Doubt as Coronavirus Spreads

Global manufacturing is set to suffer a new setback after a short-lived steady period due to the outbreak of the coronavirus in China. China’s isolation will have a measurable effect on the global economy in February, according to analysts. The recent expansion may not be sustained in the coming months due to the outbreak of the highly contagious respiratory disease.

Although January surveys of factories in Asia and Europe showed a slow decline in output, displaying shrinking inventories and stabilizing new orders over the course of the month, the virus had not yet effected global manufacturing as it has now. The virus has disrupted worldwide trade and supply chains as China is the largest manufacturing economy. Factories and companies around the world rely on Chinese products to make their own goods.

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