Global manufacturing hit by sharpest input demand fall in 2025
The steep fall in global manufacturers' purchases signals a likely production slowdown in the near future, according to the GEP global supply chain volatility index, which indicated an accelerated reduction in global manufacturers' demand for inputs (raw materials, components and commodities) in April, signalling a broad-based contraction in purchasing activity by region.
The index, produced by S&P Global Ratings and GEP, tracks demand conditions, shortages, transportation costs, inventories and backlogs based on a monthly survey of 27,000 businesses.
The steep fall in global manufacturers' purchases signals a likely production slowdown in the near future, the GEP global supply chain volatility index showed. North American factories are responding to tariffs by buying less inputs and aggressively stockpiling. Purchasing by Asian manufacturers is at its weakest since December 2023. Europe's industrial recession is finally coming to an end.
North American factories are responding to tariffs by buying less inputs and aggressively stockpiling.
April's drop in buying across global manufacturers was the sharpest of 2025 to date—specifically in North America and to a lesser extent Asia—as manufacturers scale back in anticipation of weakening future demand as a direct result of tariffs.
Purchasing activity by Asian manufacturers is at its weakest since December 2023 as demand slumps across the region's key exporting hubs, S&P Global Ratings said in a release.
Spare capacity across Asian supply chains increased significantly in April as factory slowdowns were evident in many of the region's major markets, led by China, Taiwan and South Korea.
Europe's industrial recession is finally coming to an end as spare capacity shrinks further. Supply chain capacity went underutilised to the smallest degree in ten months, reflecting growth in Germany and France, though risks remain if global trade conditions worsen.
The United Kingdom once again recorded significant manufacturing weakness, with supplier activity down at a rate that has rarely been surpassed in 20 years of data availability.
'The first blows of the tariff war have landed on global manufacturers. Stockpiling is accelerating at a concerning rate and the first signs of manufacturers anticipating slower demand and supply shortages have emerged,' said John Piatek, vice president, consulting, at GEP .
Fibre2Fashion News Desk (DS)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
37 minutes ago
- Time of India
Rate-cut boost: Rupee jumps 11 paise to 85.68 against dollar; market rally and CRR cut lift sentiment
The rupee appreciated by 11 paise to close at 85.68 against the US dollar on Friday, reversing early losses after the Reserve Bank of India (RBI) delivered a surprise 50 basis point repo rate cut and announced a phased 100 basis point reduction in the cash reserve ratio (CRR). The local unit opened weak at 85.91, down 12 paise from the previous close of 85.79. But sentiment turned sharply positive after the RBI's unexpected rate action, which supported growth prospects and lifted domestic equities. The rupee touched an intra-day high of 85.66 and a low of 86 before settling higher, PTI reported. "The rupee led the pack among Asian currencies, buoyed by the RBI's surprise 50 basis point rate cut. This decisive, growth-driven policy move provided a significant boost to the local currency and fuelled optimism among domestic equity investors," said Dilip Parmar, Senior Research Analyst at HDFC Securities. At the policy briefing, RBI Governor Sanjay Malhotra said the decision to move to a 'neutral' stance from 'accommodative' reflected a data-dependent outlook going forward. He added that the economy remained resilient, with foreign reserves strong enough to fund 11 months of imports and cover 96% of external debt. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Mistura chinesa faz cabelo crescer e homem fica irreconhecível Resultados em 30 dias Undo The surprise CRR cut is expected to inject additional liquidity into the banking system, lowering borrowing costs and aiding credit transmission. Anurag Mittal, Head of Fixed Income at UTI AMC, called the move "pre-emptive and precise," noting that the central bank's intent to fast-track transmission was clear despite existing surplus liquidity. The RBI retained its GDP growth forecast for FY25 at 6.5%. Despite the rate-induced rally, analysts warned of external risks. A rising dollar index, up 0.25% to 98.98, and weakening Asian currencies could limit further gains for the rupee. Brent crude futures slipped 0.26% to $65.17 per barrel. 'Any further rate cut by the RBI may also pressurise the rupee. However, a positive tone in the domestic markets may support the domestic currency at lower levels,' said Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan. He expects the USD-INR pair to trade between 85.40 and 86.25 in the near term. Equity markets reflected the upbeat sentiment. The Sensex closed 747 points higher at 82,189, while the Nifty crossed the 25,000-mark to end at 25,003, up 252 points. Foreign institutional investors were net buyers, purchasing equities worth Rs 1,009.71 crore, exchange data showed. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
3 hours ago
- Time of India
US stock market rallies as Dow jumps 550 points, S&P 500 tops 6,000, Nasdaq surges and Tesla leads tech comeback after strong jobs report
US stock market surges as Dow rallies 500 points on strong jobs report as S&P 500 retakes 6,000 in tech-powered comeback- The Dow rallies 500 points today after a stronger-than-expected May jobs report reassured traders that the U.S. economy is still chugging along even as tariff talks and interest-rate worries linger. The blue-chip index jumped 510 points, or 1.2%. The S&P 500 touched the 6,000 mark for the first time since late February, also up 1.2%, while the tech-heavy Nasdaq Composite climbed 1.4%. Wall Street's bounce was driven by a 3 percent rebound in Tesla — a sharp U-turn from yesterday's 14 percent slide that followed CEO Elon Musk's public spat with President Donald Trump on social media. Big tech names such as Nvidia, Meta Platforms, and Apple all traded firmly in the green, adding momentum to Friday's rally. Below, we unpack the numbers, the catalysts, and the lingering risks. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like If you have a mouse, play this game for 1 minute Navy Quest Undo Dow, S&P 500, and Nasdaq all surge Dow Jones Industrial Average surged 555 points , or about 1.3% , finishing near 42,841 — its best single-day gain in nearly two months. S&P 500 jumped 1.2% and broke through the 6,000 mark for the first time ever, closing around 6,012 . Nasdaq Composite climbed roughly 1.4% , powered by mega-cap tech stocks and a strong bounce in Tesla. It was a strong finish to a choppy week, with investors embracing optimism after several days of uncertainty. Strong jobs data adds fuel The U.S. labor market remains impressively resilient: Live Events May non-farm payrolls came in at 139,000 jobs added , topping economists' expectations. Unemployment rate held steady at 4.2% . The data signals continued economic strength but also reinforces that the Federal Reserve may not cut interest rates before September — a shift traders seem increasingly comfortable with. Tech comeback driven by Tesla Tech stocks came roaring back after taking a hit earlier this week, largely due to the Trump–Musk spat. Tesla shares jumped between 3.6% and 4.5% , helping restore confidence across the sector. Other tech leaders also bounced back: Nvidia : +1.6% Apple : +1.9% Amazon , Alphabet , and Meta all closed solidly in the green. The rally was broad-based, but tech clearly led the charge. Other market movers Russell 2000 (small-cap stocks) gained 1.3% , showing strong participation across the board. VIX (Volatility Index) dropped to a two-month low, signaling calm returning to markets. Sentiment was also lifted by signs of cooling U.S.–China trade tensions, another risk factor that has recently weighed on markets. Why did the Dow rally 500 points after the May jobs report? The Bureau of Labor Statistics said nonfarm payrolls rose by 139,000 in May, topping the Dow Jones consensus of 125,000 but easing from April's downwardly revised 147,000. Unemployment stayed at 4.2 percent. 'Today's hiring beat shows the labor market is holding up in spite of slower growth elsewhere,' noted Anthony Saglimbene, chief market strategist at Ameriprise, in a CNBC interview. How did the S&P 500 climb back above 6,000 so quickly? Fresh jobs data calmed fears of an imminent slowdown, prompting investors to scoop up stocks that looked oversold after a choppy week. At its intraday peak, the broad-market benchmark sat less than 3 percent below February's record close, putting a milestone rebound in sight. Tesla stock rebounds nearly 6% as Trump-Musk tensions cool and investors look ahead to robotaxi launch Tesla stock (TSLA) staged a powerful comeback on Friday, climbing 5.85% to close at $301.35 , after a dramatic sell-off the day before. The rebound came as tensions between Elon Musk and President Donald Trump appeared to ease, and investors shifted their focus back to Tesla's big-picture innovations — particularly its highly anticipated robotaxi rollout coming later this month. Price : US $301.35 Change : +$16.65 (+5.85%) intraday Today's range : $291.43 – $301.96 Volume : 74.7 million shares traded What's driving Tesla's recovery? 1. Musk-Trump feud cools off Tesla had plunged over 14% on Thursday after reports of strained relations between Elon Musk and Trump, which raised concerns about political and regulatory risks. But with the heat now seemingly dialed down, the stock surged, clawing back a large chunk of those losses. 2. Eyes on the robotaxi launch Investors are increasingly focused on Tesla's next major catalyst: the debut of its robotaxi service , expected around mid-June. The move could open up a new revenue stream and solidify Tesla's place at the forefront of autonomous tech. 3. Technical bounce After falling below key support levels, Tesla stock rebounded sharply from oversold territory. Friday's rally brought it back above $300 — a psychologically important level for many traders. 4. High volume, high interest More than 74 million shares traded hands Friday, signaling strong buying interest and a renewed sense of optimism. Analyst take: cautious optimism Despite Friday's big move, analysts remain somewhat divided. The average 12-month price target still sits around $283–$290 , suggesting the stock could drift slightly lower from current levels. However, many remain bullish on Tesla's long-term growth potential, especially as it moves beyond EVs into AI and autonomous transport. Are tech giants like Tesla, Nvidia, Meta, and Apple leading the charge again? Yes. Tesla jumped more than 3 percent as bargain hunters stepped in after Thursday's plunge. Nvidia, Meta, and Apple each gained over 1 percent, restoring tech leadership and accounting for a big slice of today's index advance. What does the stronger jobs report mean for the Federal Reserve's June 17–18 meeting? With job growth still positive, traders scaled back bets on an immediate rate cut. Futures now imply the Fed will hold its policy rate steady while it waits for clearer signals on how fresh tariffs and cooling service-sector data feed into inflation. Could summer tariffs and weaker services data stall this rebound? Possibly. Weekly jobless claims ticked higher, ADP reported just 37,000 private-sector hires in May, and the ISM's services gauge slipped unexpectedly. Saglimbene cautions that tariff impacts 'should start showing up in the data over the summer,' meaning markets 'are holding judgment on growth and profitability for the next couple quarters.' FAQs: What caused the Dow to rally 500 points today? Stronger-than-expected May jobs data boosted investor confidence. Why did the S&P 500 hit 6,000 again? A tech stock rebound and solid labor market pushed it above 6,000.
Time of India
3 hours ago
- Time of India
Rate rage returns: Trump demands 'a full point' rate cut from Fed, Wall Street cheers as jobs data signals resilience
Wall Street surged Friday after a better-than-expected US jobs report and a blistering social media tirade by President Donald Trump demanding a full percentage point interest rate cut from the Federal Reserve. The sharp remarks, delivered in trademark all-caps on Trump's Truth Social platform, were aimed at Fed chair Jerome Powell for failing to act aggressively despite a cooling inflation environment. 'Too Late' at the Fed is a disaster! Europe has had 10 rate cuts, we have had none,' Trump wrote, insisting the Fed should 'go for a full point, Rocket Fuel!' and sharply criticizing the Biden administration's reliance on short-term borrowing. 'There is virtually no inflation (anymore), but if it should come back, RAISE 'RATE' TO COUNTER. Very Simple!!! He is costing our Country a fortune.' Meanwhile, the S&P 500 index jumped 1.2% in morning trading, heading for its second straight weekly gain. The Dow Jones Industrial Average climbed 555 points, or 1.3%, to 42,874.34, while the tech-heavy Nasdaq Composite rose 1.3%, lifted by a rebound in major technology names. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với mức chênh lệch giá thấp nhất IC Markets Undo The rally was broad-based, with all 11 sectors of the S&P 500 in positive territory. Investors appeared to shrug off concerns about economic headwinds, drawing optimism from Friday's Labour Department data that showed employers added 139,000 jobs in May. While slower than April's revised figure of 147,000, the pace of hiring suggested continued labour market resilience despite Trump's trade policies and regulatory crackdowns. Trump's volatile tariff regime and threats against trading partners have drawn sharp criticism from US businesses. Retailer Lululemon plunged nearly 20% after cutting its annual profit guidance, blaming rising costs linked to Trump's import taxes. The fallout added to warnings from other sectors, including airlines and consumer goods firms, about margin pressure and potential demand slowdown. Still, Friday's bounce in equities was helped by hopes that the Trump administration could ease tensions with key partners. A reported 'very good' phone call between Trump and Chinese President Xi Jinping raised optimism for progress in trade negotiations, although Chinese state media adopted a more cautious tone. Bond yields rose, reflecting shifting expectations for interest rate policy. The yield on the 10-year Treasury increased to 4.47% from 4.39% a day earlier, while the 2-year yield rose to 4.00%, up from 3.92%, indicating growing investor bets that the Fed could eventually pivot toward easing. Tesla shares recovered 3.6% following Thursday's dramatic 14.5% plunge, triggered by Trump's escalating feud with Elon Musk. The president had threatened to use executive powers to cut off federal contracts to Musk's companies, wiping out nearly $150 billion in Tesla's market value within a single session. The rebound came as both sides reportedly agreed to 'cool off' amid backchannel talks arranged by White House aides. In global markets, European indexes posted modest gains while Asian equities were mixed. India's Sensex rose 0.8% after the Reserve Bank of India cut its benchmark interest rate to 5.50%, marking a dovish shift as inflation eases. Oil prices remained stable, with US crude at $63.30 per barrel and Brent crude at $65.31. The dollar strengthened slightly against the yen, while the euro slipped to $1.1414, reflecting lingering caution in currency markets. As the Fed heads into its policy meeting later this month, markets remain on edge. Trump's aggressive push for a large rate cut and his public criticism of Fed Chair Jerome Powell have reignited debate about central bank independence — and whether political pressure will influence the future trajectory of US interest rates. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
