UK factories slash jobs as Chinese slowdown causes global ripples

Manufacturers reduce headcount for first time in two years amid fears the world's second-largest economy is running out of steam

Britain's manufacturers cut their headcount for the first time in two years in August amid an uncertain outlook for exports, in the latest sign that China's economic slowdown is being felt around the world.

Global markets have been hit by a shares rout in China amid fears the world's growth engine is running out of steam. Those worries were fanned overnight by news that the output of China's factory sector slumped to a three-year low in August. Shares in Europe were sharply lower on Tuesday morning, extending losses made over August, the worst month in years for European stock markets.