British manufacturers reported a return to growth last month after a long slowdown, according to a survey published on Monday, but the higher prices charged by firms may add to the Bank of England's caution about cutting interest rates.
Wet weather and ongoing cost-of-living pressures kept a cloud over British consumers in May, with one survey showing the weakest spending growth in more than three years.
Global factory activity offered signs of recovery last month as contraction slowed in the euro zone and manufacturing activity in most of Asia's largest economies picked up, although the U.S. stood apart with output weakening for a second straight month, private business surveys showed on Monday.
Most Asian stocks crept lower on Tuesday, cooling from recent gains as investors awaited more cues on interest rates this week, while Indian shares hovered around record highs on bets that the BJP won a third consecutive term in the 2024 general elections.
U.S. manufacturing activity slowed for a second straight month in May as new goods orders dropped by the most in nearly two years, and spending on construction projects slipped unexpectedly the month before, the latest indications that a gradual slowdown in the economy is taking hold.
The dollar languished at its lowest since April against the euro and sterling on Tuesday as signs of a softening U.S. economy boosted the case for earlier Federal Reserve interest rate cuts.