Global Manufacturing Sector Experiences Contraction in November 2025

Weak Demand and Tariff Uncertainty Drive Slowdown

The global manufacturing sector faced significant challenges in November 2025, with major economies such as the Euro Zone, China, and Japan recording contraction in their manufacturing activities. According to business surveys released on December 1, 2025, the slowdown was primarily driven by weak domestic demand and persistent tariff uncertainties that continued to weigh on industrial prospects.

Regional Variations in Manufacturing Performance

While the Euro Zone, China, and Japan experienced manufacturing contraction, some regions demonstrated resilience. The UK and several Southeast Asian countries showed growth in their manufacturing sectors, as indicated by the Purchasing Managers' Index (PMI) data. This divergence highlights the uneven impact of global economic factors on different regions.

Implications for Global Economy

The contraction in major manufacturing economies could have significant implications for global trade and economic growth. As manufacturing is a key driver of economic activity, the slowdown may lead to reduced demand for raw materials and intermediate goods, potentially affecting commodity prices and supply chains worldwide.