Factory Activity Weakens in Asia, Rises in U.S. & Europe

Global factory activity in 2025 as of May is showing some decline and upheaval in Asia, an effect that U.S. tariffs are having on economies in the region. Meanwhile, manufacturing purchasing managers indicies rose in the United States and Europe, the latter remaining in contraction territory, however. Manufacturing powerhouses like Taiwan and South Korea saw smaller dips in activity, while these were bigger in Indonesia and Vietnam. In May, these four Asian indices had recovered somewhat in the light of easing tariffs, but without any of them reaching expansion territory again.

China, the country most affected by U.S. tariffs, has not posted data for May yet. In April, its PMI dipped and came close to the 50-point threshold of stagnation. Low domestic demand in the country, which has plagued the Chinese and to a certain extend the world economy for some time, compounded issues in Asia.

In the Eurozone, the index gained almost three points since January to a slower contraction at 49.4. The net gain in the United States was just around one point so far in 2025, but the country stayed in expansion mode throughout the year.