INSUBCONTINENT EXCLUSIVE:
to 48.8 as firms cited delayed client decisions amid U.S
tariff pressures, though factories posted stronger output growth
straight month, and business optimism plunged to its lowest since mid-2020
imposition of 10% general tariffs and 25% auto levies in early April rattled service providers but left manufacturers surprisingly
resilient.Eurozone factories increased production at the sharpest rate since May 2022, exploiting cheaper energy imports from slumping
Economy Grinds to Halt as Services Slump Offsets Factory Resilience
(Photo Internet reproduction)Services firms absorbed faster wage growth and dimming consumer sentiment, cutting jobs slightly in Germany and
Balancing ActPolicymakers now face a fractured economy: factories tentatively recovering while consumption-driven services falter
Trade friction fallout remains contained for now.Manufacturers reported marginal export order gains, with German auto giants partially
offsetting tariffs through price hikes
Yet inventories swelled as goods lingered in warehouses, signaling future production risks.Economists warn stagnation could persist through
mid-2025, with ING slashing GDP forecasts to 0.5% annual growth
Defense spending and infrastructure plans may later stimulate demand, but near-term momentum hinges on resolving U.S.-EU trade tensions.With
between industrial grit and consumer retreat.
