Manufacturing Stagnates Amid Trade Tensions

European manufacturing is showing signs of stabilization, but the story is vastly different in Asia, where weak demand in China and Trump's tariffs are causing strain, according to recent surveys. Amid these challenges, the outlook for the Asian manufacturing sector remains bleak.

There was a modest uptick in the Eurozone, with the HCOB Eurozone Manufacturing Purchasing Managers' Index reaching a 33-month high of 49.4 in May, though still below the 50 threshold that defines growth. France's performance improved to 49.8, while Germany lagged at 48.3, reflecting a mixed picture within the region.

In Asia, manufacturing activity remains under pressure. Japan and South Korea continue to grapple with lower output as U.S. tariffs weigh heavily. Meanwhile, China's repeated contractions highlight a struggling economic landscape. Trade negotiations with the U.S. have stalled, maintaining an atmosphere of uncertainty and deflationary pressures across Asian markets.

(With inputs from agencies.)