The implementation of US tariffs on global manufacturing is causing difficulties for economic sectors including global manufacturing, which is becoming increasingly weak.
In April, purchasing managers' indexes across Asia and revised numbers in Europe on Friday showed a continued decline in factory activity.
The reports eased consumer concerns after several economies managed to avoid the impact of tariffs and uncertainty following US President Donald Trump's import tariffs announcement.
In addition, Thursday's report showed that manufacturing activity in the US was the hardest hit sector in five months after factories in China suffered the worst decline since December 2023.
ING's international chief economist James Knightley said factory sentiment will not change until the direction of Trump's tariffs becomes clearer.
James also said that the US government will not make major decisions until it is confident that there will be no immediate change in the economic environment.
Large factory indices in the Asian region, namely Taiwan and South Korea, suffered sharp declines driven by market downturns and reduced production operations.
In addition, manufacturing activity in Southeast Asian countries such as Malaysia, Indonesia and Thailand also shrank due to Trump's tariffs.
While several factories in other Asian countries were affected by the US tariffs, India recorded positive and encouraging expansion.
Hamburg Commercial Bank's chief economist Cyrus de la Rubia commented that industrial activity remained vulnerable to the US tariffs, but manufacturers managed to increase profit margins in April due to lower purchase prices and higher selling prices.
He added that the improvement was short-lived as the US tariffs were likely to see Chinese goods offered more widely in the EU, potentially increasing competition in the market.
