Global Manufacturing Contracts Amid US Tariffs, Weak Demand

Global manufacturing activity experienced a slowdown in September 2025, largely influenced by President Donald Trump's tariffs and weak demand from key markets like China and India. The Eurozone manufacturing sector slipped into contraction, with countries such as Germany, France, and Italy showing declines, while the Netherlands showed some growth. In Asia, Japan's industrial production contracted for a second consecutive month due to US tariffs and diminished demand, although manufacturers remain cautiously optimistic about a rebound. China's factory activity continued to shrink for a sixth straight month, highlighting ongoing economic challenges despite some improvement in export volumes to regions like India and Southeast Asia. India also saw a slowdown in industrial growth, impacted by US tariffs on Russian oil imports and weak consumer demand. Meanwhile, US manufacturing growth softened but remained positive, with output and new orders expanding at a slower pace amid tariff-related export losses and high input costs, though business sentiment showed some improvement.