Loading...
BREAKING NOW
Apr 3, 2025 4:52 pm
Global Media Network
Global Manufacturing Slowdown Hits Factories
Global manufacturing economies faced difficulties in October as U.S. tariffs and weaker demand affected factory orders, new surveys show. The slowdown was widespread, hitting Europe, the United States, and parts of Asia, while a few countries saw modest growth.
In the United States, manufacturing activity contracted for the eighth straight month. Import duties and strained supply chains weighed heavily on new orders, leaving many factories struggling to plan for future production. Some manufacturers said the “unpredictability of the tariff situation continues to cause havoc and uncertainty on future pricing or cost,” adding that tariffs on production equipment made expanding capacity difficult.
In the euro zone, factory activity largely stagnated. The region’s purchasing managers’ index (PMI) showed new orders were flat and employment in manufacturing declined. Germany, a major exporter, saw production growth slow again, with engineering orders plunging in September, according to the VDMA association. France’s manufacturing sector remained weak, and Italy’s output fell slightly, while Spain’s factories expanded faster than in September, standing out among Europe’s top economies.
“The final release of the euro zone manufacturing PMIs confirmed the sector remains stagnant,” said Paolo Grignani of Oxford Economics. He added that domestic demand was the main driver of growth, while weak foreign orders, particularly from France and the United States, continue to be a warning sign.
In Britain, factories had their strongest month in a year, driven by a one-off boost from Jaguar Land Rover restarting production after a cyberattack. Despite this rebound, uncertainty persists about U.S. demand.
Asian economies also showed mixed results. China’s private-sector PMIs indicated slower growth in manufacturing, continuing a trend of weakness after a surge in exports ahead of U.S. tariffs earlier this year. Official data showed China’s factory activity fell for the seventh consecutive month in October. Economist Zichun Huang noted that slower manufacturing and construction growth suggest China’s economy lost momentum, with only modest benefits expected from the recent U.S.-China trade agreement.
South Korea’s manufacturing sector contracted in October, though a new trade deal with the United States eased some tariffs on Korean goods. India, in contrast, saw faster factory activity, supported by strong domestic demand, which helped offset export challenges. Malaysia and Taiwan experienced continued declines, while Vietnam and Indonesia reported growth in their manufacturing sectors.
Last week, President Donald Trump’s visit to Asia produced some progress in trade negotiations with China and South Korea. Leaders agreed to delay reciprocal tariffs for a year, but broader trade tensions remain. China’s policymakers continue to monitor whether the $19 trillion economy can meet its 2025 growth target of around 5% without additional stimulus.
Trade data for September showed China’s exports increased faster than expected, but this was largely due to shipments to new markets, as U.S.-bound exports fell 27% year-on-year. South Korea’s compromise with the U.S. helped protect the country’s position in global trade, but analysts said the benefits were limited.
Overall, the global manufacturing sector remains under pressure from trade disputes, tariffs, and uneven demand. While some countries benefit from domestic demand or temporary rebounds, most major economies are struggling to recover momentum.
Trending Now
Trending Now
Got a Story to Share?
Join our network of global voices. Whether you're an experienced journalist or a passionate writer with a unique perspective, GMN offers a platform to reach millions.
Stay in the loop with news, offers, and writing opportunities.
Download The App On
©️ 2025 GMN Group LLC - Global Media Network. All rights reserved.