SIGNS China’s economic slowdown is deepening and weak growth in Europe and the United States reported Friday further damaged the outlook for the global economy, sending stocks and commodity prices reeling.

    China’s factory sector shrank at its fastest rate in almost 6-1/2-years in August, a private survey showed, pushing investors who fear China’s sagging economy will translate into slower global economic growth to take refuge in gold and bonds.

    World markets had already been on edge after China’s surprise devaluation of the yuan last week and a 33 percent fall in its stock markets since mid-year.

    “Uncertainty about China growth is now the main swing factor in markets,” said Tim Condon, an economist at ING Group in Singapore.

    “Today’s data reinforced the doubts about global growth.”

    South Korea, which counts China as its biggest trading partner, said Friday its exports slumped and China’s Taiwan reported its export orders in July fell more than expected.

    And while a similar factory survey in Japan pointed to a pickup there due to stronger domestic demand, policymakers in Tokyo are keenly aware of the dangers if China slows further.

    Stock markets around the world tumbled towards their worst week of the year Friday as the weak Chinese data sent investors scurrying to safe-haven assets.

    A relatively upbeat eurozone survey, one of the bloc’s earliest monthly economic indicators, suggested the European Central Bank’s massive bond-buying program and a weaker euro may be finally having an impact on activity.

    Growth in the U.S. manufacturing sector slowed unexpectedly to its weakest pace in almost two years in August, according to Markit.

    The preliminary U.S. Manufacturing PMI fell to 52.9 in August, its lowest since October 2013, from a final July reading of 53.8. Economists polled by Reuters forecast an August reading of 54.

    Job creation also slowed, with the index at 52.2, its weakest since July 2014, down from 53.8 in July.

    “August’s survey highlights a lack of growth momentum and continued weak price pressures across the U.S. manufacturing sector, which adds some fuel to the dovish argument as policymakers weigh up tightening policy in September,” said Tim Moore, senior economist at Markit.(SD-Agencies)