German manufacturing purchasing managers’ index (PMI) has fallen to 44.7, the second lowest since 2009, compared with an expected number of 48, according to London-based asset manager Miton.

Meanwhile, the new orders sub-index fell to 40.1, the lowest since the global financial crisis.

Anthony Rayner, manager of Miton’s multi asset fund range, explained that this weak manufacturing survey in Germany has “sharpened the focus of markets towards the extent of the global economic slowdown.

 “Things look bleak for the ‘powerhouse’ of Europe, with its manufacturing particularly geared into the global economy.

“Looking at the global slowdown, in the absence of any inflation or any sensible answers from politicians, central banks seem to be standing ready with the next round of quantitative easing (QE), now considered an established part of the central bank tool kit.

However, “there’s a growing belief that the benefits of QE are unclear, while the unintended consequences of QE are unhelpful in generating sustainable economic growth,” he explained.

QE has at least in part led to the increase in wealth inequality, particularly between the bottom 90 percent and the top 0.1 percent. This clearly “doesn’t sit well” with many voters, and is “at least partly behind the extraordinary rise in populism in recent years.”

Mr Rayner continued: “The Fed pause has boosted financial assets since the beginning of the year and eased financial conditions generally. More recently, the weaker economic growth numbers, especially the German numbers last week, as well as dovish statements from central banks, have pushed longer dated government bond yields lower.

“Going forward, we expect the Fed to be the major driver across assets, and we expect politics to remain central. A slowing global economy will only push central banks and politicians further into the spotlight,” Mr Rayner concluded.

Miton has £4.4 billion in assets under management.