RTRS: GLOBAL ECONOMY-Output climbs led by Asia, despite euro crisis
* Chinese, Indian PMIs climb despite global worries
* Euro zone PMI up but country divergence remains wide
* Japan warns of long deflation
By Jonathan Cable and Langi Chiang
LONDON/BEIJING, Dec 1 (Reuters) - Manufacturers in China and India cranked up the pace of production last month and Germany and France led the way in Europe, offering a boost to the global economy in spite of a spreading euro zone debt crisis.
But while strong numbers from the largest European economies provide good news for policymakers worried about the sovereign debt crisis in Europe's single currency bloc, they highlighted a growing divergence among its members. [EUR/PMIM]
Data from Germany showed its manufacturing sector expanded significantly faster last month than in October while France's PMI bounced to a level not seen in 10 years. [ID:nSLAUME6JC]
Italian numbers showed conditions improved at their weakest rate for nine months, however, and Spanish manufacturing stagnated. [ID:nSLAUME6JK] [ID:nSLAUME6JB]
Ireland, which accepted an 85-billion-euro European Union emergency aid package on Sunday, saw a slight upturn in activity but still below levels needed for a meaningful recovery and Greek manufacturing activity contracted as it has done for the past 15 months.
"It is worrying to see Italian activity lose momentum in addition to ongoing weak activity in Spain, Ireland and, especially, Greece," said Howard Archer at IHS Global Insight.
The Irish bailout has failed to reassure investors and global officials are also focusing on the problem, with the G20 deputy finance ministers holding a teleconference about it on Monday and a top U.S. Treasury official travelling to Europe.
European policymakers came out in force on Tuesday to try to calm markets, with European Central Bank President Jean-Claude Trichet warning that pundits were underestimating the determination of governments to keep the euro zone stable.
But markets paid little attention, targeting Portugal, Spain and Italy only days after the EU came to Ireland's aid.
Outside the euro zone, British manufacturing activity leapt unexpectedly to a 16-year high in November. [GB/PMIM]
