Global Manufacturing Slowdown: Europe and Asia Hit by Tariffs and Weak Demand

Manufacturing Contraction in Europe

• 🇪🇺 Eurozone manufacturing slipped back into contraction in November, according to business surveys.
• 🇩🇪 Germany's manufacturing sector experienced a significant fall in business conditions, with new orders dropping at the fastest rate in 10 months.
• 🇫🇷 French manufacturing contracted further, impacted by a drop in production and slower demand for goods.

Asia's Manufacturing Struggles

• 🇨🇳 China's factory activity slipped into a slight contraction, following its official measure which showed activity falling for the eighth consecutive month.
• 🇯🇵 Japan's PMI indicated a continued decline in new orders, marking a 2 and a half year downturn.
• 🇰🇷 South Korea's factory activity also contracted for the second month in November.

Bright Spots and Contributing Factors

• 🇬🇧 Britain saw its first rise in manufacturing activity since September last year, driven by improved domestic demand and slower order slowdowns from overseas.
• 📉 Analysts attribute the widespread weakness to lower domestic demand and tariff uncertainties.
• 🌍 Progress in US trade negotiations did not lead to a significant recovery in orders for the Asian region.