Source - Reuters
In May, European factory activity showed signs of stabilizing, with production rising for the third month in a row. The Eurozone’s manufacturing PMI improved to 49.4, close to growth, while France neared expansion. However, Germany remained weak.
Meanwhile, U.S. manufacturing shrank for the third month, hitting a six-month low (PMI: 48.5) due to supply chain delays from tariffs. Trump’s sudden steel and aluminum tariff hikes added uncertainty, hurting business confidence.
In Asia, factory activity struggled. Japan’s PMI stayed below 50 for the 11th month, and South Korea’s fell for the fourth month due to weak demand and U.S. tariffs. China’s manufacturing also shrank for a second month, flooding Asia with cheap exports and hurting regional economies. India’s growth slowed as prices and tensions weighed on demand.
With trade talks stalled and tariffs rising, businesses in Asia and the U.S. are hesitant to invest, darkening the outlook for global manufacturing.