Performance by region: Asia-Pacific leads

Regional analysis reveals clearly differentiated dynamics. ASEAN factories recorded the highest output growth in 2025 on average, consolidating the region as the engine of the global manufacturing sector.

In contrast, the Eurozone was the region with the weakest performance of the year. Nevertheless, the weak growth of European manufacturing output during 2025 represented its first average annual expansion since 2021, marking a turning point after several years of contraction.

At the country level, India led by far in manufacturing output expansion, followed by Thailand, Ireland, Greece, Pakistan and the United States.

On the negative end, the sharpest drop was recorded in Romania, followed by Mexico, Turkey and Canada. Companies in Mexico and Canada attributed the declines in part to uncertainty generated by U.S. tariff policy.

International trade: weakness at year-end

Goods exports recorded a drop at the end of 2025, in a context of weak growth in the sector. This weakness in external demand was reflected in the sector’s Forward Production Index, which remained below its long-term average. As a result, goods producers generally reduced their purchases in an attempt to adjust their inventory levels to lower expected demand.

In this context, it highlights that South Korea replaced China as the only economy, along with India, to record growth in new export orders for goods by the end of 2025.

Prospects for 2026: a European paradox

Forward-looking data on business confidence reveal a surprising reversal of expectations.

Eurozone manufacturers ended the year with the highest level of optimism. Eurozone production expectations in December 2025 reached their highest level since February 2022.

This optimism contrasts sharply with sentiment in other regions. North American companies are the most pessimistic relative to their long-term average, likely reflecting uncertainty about trade policy and the impact of potential tariffs.

In Asia, China’s producers maintain the most pessimistic outlook, in line with the structural challenges facing their economy. In contrast, business sentiment improved in South Korea and Vietnam.