Factories in Europe eased off the accelerator last month but Chinese and Indian manufacturers bumped up production, so far unscathed by Japan's devastating earthquake and tsunami, surveys showed on Friday.
Worryingly for policymakers, sustained growth in orders allowed European manufacturers to pass on the costs of soaring raw materials to customers, with prices rising at their fastest rate since at least late 2002.
In Asia's big economies, similar surveys of manufacturers showed worries that high oil prices could scupper growth were unfounded for now, even though China's outlook was clouded by signs of disruptions to trade with Japan.
Markit's Eurozone Manufacturing Purchasing Managers' Index (PMI), which records factory activity across all the major euro area economies, dipped to 57.5 last month from February's near 11-year high of 59.0, marking the 18th month above the 50 mark that divides growth from contraction.
The output price index rose to its highest level since Markit began tracking it in November 2002 and, coupled with data on Thursday that showed euro zone inflation at 2.6 percent in March, will cement expectations of a rate rise next week.
"They (PMIs) are still at very robust levels and pointing to healthy growth in the industrial sector, suggesting that the euro zone recovery will continue in the near term and gain some steam," said Ben May at Capital Economics.
A pair of China PMIs showed factories were growing moderately rather than booming, and while some economists warned of a continued slowdown, few thought slowing production would slam the brakes on the world's second largest economy.
"It's growing at a slow and steady speed as tighter monetary policy impacts," said Stephen Green, an economist at Standard Chartered in Shanghai. "I'm not overly worried about growth."
China's official purchasing managers' index (PMI), compiled by the government, rose to 53.4 in March from a six-month low of 52.2. A comparable survey published by HSBC steadied near seven-month lows at 51.8.
In India, the mood among manufacturers was more upbeat. An HSBC-sponsored PMI there compiled from a survey of around 500 firms held steady at a four-month high of 57.9.
British manufacturing growth weakened from a survey record high the prior month after the inflow of orders slowed sharply but the prices charged index hit a survey record, showing manufacturers' pricing power is rising.
Comparable figures due at 1400 GMT are expected to show a light weakening of growth in the United States.
PRICES STILL RISING, RATES TO FOLLOW
The surveys suggested policymakers' main focus in months ahead will be on inflation concerns.
The European Central Bank has already signaled it intends to raise interest rates next week from a record low of 1.0 percent and the Bank of England, facing inflation more than double its target, may follow suit as soon as May.
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