Manufacturing, long considered the backbone of many of the world’s largest economies, showed signs of renewed weakness across Europe and Asia in November 2025, according to a series of business surveys and market data reviewed by major news agencies. While a handful of bright spots emerged in places like Britain and Southeast Asia, the overall picture painted by fresh purchasing managers’ index (PMI) readings was one of subdued demand, persistent headwinds, and mounting uncertainty for factory floors from Frankfurt to Shanghai.
The eurozone’s manufacturing sector, already battered by months of sluggish orders and economic jitters, slipped back into contraction territory last month. According to Reuters, the region’s PMI data revealed that Germany’s manufacturing sector—often seen as Europe’s industrial engine—experienced a marked deterioration in business conditions. In fact, new orders in Germany fell at the fastest rate in ten months, forcing firms across the eurozone to cut jobs at the quickest pace seen since April. “Current conditions remain at best subdued, with output trending down from an already weak level, reflecting the combination of headwinds faced by the manufacturing sector, including tariffs, heightened Chinese competition and general economic uncertainty,” said Leo Barincou, senior economist at Oxford Economics, in comments reported by Reuters.
Barincou added, “The persistent industrial slump appears to be putting pressure on headcount, with firms shedding jobs at the fastest pace since April. Meanwhile, weak demand means that firms were unable to transmit the rise in input costs to their selling prices.” The inability to pass on higher costs to customers is a worrying sign, suggesting that companies are absorbing financial pain rather than risking further drops in demand by raising prices.
France, too, continued to struggle. S&P Global’s survey, cited by Reuters, indicated that the French manufacturing sector contracted further in November, extending a three-and-a-half-year sequence of declining factory orders. Italy, however, offered a rare glimmer of hope for the continent: its manufacturing sector crept back into growth, a positive signal for a country that’s been grappling with stagnation and high public debt.
Across the English Channel, Britain’s manufacturing sector recorded its first increase in activity since September 2024. The improvement was attributed to stronger domestic demand and a slight easing in the slowdown of overseas orders, as reported by Reuters. For British factories, this uptick was a welcome change, suggesting that some of the post-Brexit uncertainty and supply chain snarls may be easing—at least for now.
Asia’s manufacturing giants, meanwhile, found little to celebrate. China, the world’s largest manufacturer, saw factory activity slip back into slight contraction in November, according to a private-sector PMI reported by Reuters. Beijing’s official measure, released a day earlier, confirmed that China’s manufacturing activity had fallen for the eighth consecutive month, though the pace of decline had slowed somewhat. “Container throughput at Chinese ports was little changed last month compared to October. To the extent that demand did improve, it didn’t do much to support production amid already high inventory levels—the output component dropped to a four-month low,” said Zichun Huang, China economist at Capital Economics, in comments to Reuters. “And while the output price component edged up slightly, it stayed at a low level, pointing to persistent deflationary pressures.”
Japan, another Asian powerhouse, didn’t fare much better. As reported by Devdiscourse and Reuters, Japan’s manufacturing new orders continued to decline, stretching the sector’s downturn to two-and-a-half years. The country’s Nikkei 225 stock index dropped nearly 2% on December 1, 2025, following the release of weaker-than-expected factory data. Persistent concerns about the impact of U.S. President Donald Trump’s tariffs on the regional economy have kept Japanese manufacturers on edge, with many businesses still adapting to a shifting global trade landscape.
South Korea’s manufacturing sector contracted for a second straight month in November, according to Reuters. However, there was a silver lining: Korean exports rose for the sixth consecutive month, buoyed by record chip sales and a surge in auto exports after a trade deal with the United States. Taiwan’s factories continued to struggle, but the pace of decline in activity slowed, offering a faint glimmer of stabilization.
Elsewhere in Asia, the story was more upbeat. Emerging market manufacturers in Indonesia and Vietnam both reported brisk growth in factory activity, with Malaysia swinging back to growth as well. These countries, often seen as beneficiaries of supply chain shifts and foreign investment redirected from China, are increasingly viewed as manufacturing bright spots in the region.
Oil prices added another twist to the global economic narrative, surging by more than $1 a barrel around December 1, 2025, according to Devdiscourse. This jump in energy costs could exacerbate input price pressures for manufacturers already struggling to protect their margins.
On the consumer front, there was a rare dose of optimism. Black Friday 2025, which fell on November 29, brought projections that consumer spending would exceed forecasts, offering a glimmer of hope amid a generally uncertain U.S. economic outlook. U.S. equities posted mixed results in the wake of these developments, with technology stocks drawing particular attention, as noted by Devdiscourse.
It’s worth noting that the global manufacturing malaise isn’t just about numbers and charts—it’s about real people and communities. Across the eurozone, factory workers faced rising job insecurity as companies moved to trim payrolls. In Asia, businesses scrambled to adapt to shifting trade rules and unpredictable demand, often making tough decisions about investment and hiring. For policymakers, the challenge remains how to shore up growth in a sector that’s both a source of national pride and a critical driver of economic prosperity.
Tariffs, in particular, have cast a long shadow over the manufacturing outlook. While some trade deals—such as those between the U.S. and Japan or South Korea—have provided a measure of relief, the broader uncertainty generated by the Trump administration’s approach to trade has left many firms hesitant to commit to new investments or long-term hiring. As Reuters observed, “While Trump’s trade deals with countries like Japan and South Korea and lowered tensions with China have given firms some confidence, many are still adjusting to the new U.S. trade reality.”
Looking ahead, the divergent fortunes of different regions and sectors underscore just how complex and interconnected the global manufacturing landscape has become. While some countries are finding ways to grow despite the odds, others remain mired in contraction, hampered by weak demand, high inventories, and the ever-present specter of tariffs and trade disputes.
For now, the world’s factories are at a crossroads, with each month’s data offering new clues about the direction of the global economy. Whether the green shoots seen in places like Britain, Italy, and Southeast Asia can take root and spread remains to be seen. But one thing is certain: manufacturers, workers, and policymakers alike will be watching the numbers—and the headlines—very closely in the months ahead.