Factory data offer glimmer of hope Global manufacturers have entered 2012 in downbeat fashion but new data provided a glimmer of hope as factory activity eased its downward spiral in parts of the eurozone and manufacturing expanded in India and China. Purchasing managers indices remain in contraction across many leading economies, reflecting fears that financial market turmoil and the troubles of debt-encumbered eurozone countries are tipping the currency bloc into another recession. IN Global Economy However, the rate of decline eased in several countries in December, and there remained considerable variation between large economies. In the US, an ISM manufacturing survey due for release on Tuesday was expected to show a modest improvement as the US economy continued to resist a slowdown in Europe. Overall eurozone production declined for a fifth consecutive month in December, according to Markit, which compiles data from a survey of around 3,000 manufacturing firms. Its eurozone manufacturing purchasing managers" index came in on Monday at 46.9, unchanged from a previous December estimate but 0.5 points higher than November. A result below 50 indicates a contraction in activity. Chris Williamson, chief economist at Markit said: "Eurozone manufacturing is clearly undergoing another recession. But Germany, France, Austria and the Netherlands continued to show signs of resilience compared to the weaker economies of southern Europe, in part due to their ability to export goods to still-growing emerging markets. German PMI was adjusted higher to 48.4 from an initial estimate of 48.1, showing an improvement from November's reading of 47.9. Franz Fehrenbach, chief executive of Germany's Bosch, the world's biggest supplier of car parts, said: "We are bracing ourselves for further weakening in economic growth but so far we don't foresee a global recession." In contrast, Spain's manufacturing sector remained in the doldrums in December, with Markit's PMI gauge showing a result of 43.7, little changed from the previous month. Economists said the contraction in manufacturing activity in Italy was somewhat slower than in November but a reading of 44.3 still suggests the environment for Italian producers remains tough. In China, a closely watched purchasing managers" index improved slightly from 49 in November to 50.3 in December, as other Asian manufacturers also showed signs of stabilisation. An Indian PMI gauge rose from 51 to 54.2 and a Taiwanese manufacturing barometer eased from 43.9 to 47.1. Analysts at Danske Research said that while Chinese growth "remained subdued . . . the Chinese economy does not appear to be deteriorating further." In South Korea, however, manufacturing activity remained at a three-year low as HSBC's purchasing managers" index, based on 400 South Korean factories, fell to 46.4 in December, from 47.1 in November. The world economy is slipping into a new era of low growth, not just a temporary recession," Lee Myung-bak, South Korea's president, said in his New Year address to the nation on Monday.