Manufacturing production slows down throughout the world

Mexico.- The US manufacturing sector contracted last June for the first time since July 2009, the Institute for Supply Management informed. In addition, exports dropped last April for the first time since November and new orders to factories, an indicator of future activity, posted the steepest drop since October 2001, just after 9/11. This is overwhelming evidence that economic problems in Europe and China’s cooling down badly damage manufactures, one of the main driving forces for the United States’ recovery. Many of the sectors that shrank –oil, plastics and chemicals—are linked to raw materials, which prices have posted sharp drops in the last few months. The rest of the world is also showing signs of losing momentum. Industrial production at Eurozone kept on falling in June; even Germany, the most important economy in Europe slowed down.