The latest economic data shows significant strain on UK and German industries as President Donald Trump’s sweeping tariff policies begin to take a global toll. Surveys of purchasing managers, released Wednesday, reveal a contraction in private sector output across both nations.
Germany’s Purchasing Managers’ Index (PMI) dropped to 49.7 in April, down from 51.3 in March, while the UK’s fell even further to 48.2—its weakest since November 2022. Any reading below 50 signals economic contraction.
Economists and businesses cited “tariff concerns and uncertainty” as key factors behind slumping output and plummeting business confidence. The International Monetary Fund has also downgraded growth forecasts for the UK, Germany, and the US, warning that Trump’s aggressive trade stance risks significant global fallout.
In the UK, firms are already seeing lower client demand and heightened caution. “There is no doubt that the chilling effect of the US president’s tariffs has slowed UK growth,” said Pantheon Macroeconomics economist Rob Wood.
The broader eurozone fared slightly better, with a flat PMI reading of 50.1, though order books are also shrinking rapidly.
With global trade slowing and new export figures from South Korea confirming a broader downturn, the pressure on European economies is mounting.