Global manufacturing stays resilient as cost pressures and supply disruptions rebuild
Updated
Updated · haver.com · May 7
Global manufacturing stays resilient as cost pressures and supply disruptions rebuild
11 articles · Updated · haver.com · May 7
Middle East tensions, especially around the Strait of Hormuz, have lifted shipping costs, constrained Saudi, Iranian and UAE oil exports, and pushed output prices higher.
AI investment, easing US tariff disruption and defence spending are supporting factory output, but tighter logistics, higher freight and insurance costs are reinforcing inflation risks.
Rate expectations have turned more hawkish in many economies, while US credit conditions remain broadly neutral and UK wage growth stays comparatively elevated, complicating the inflation outlook.
Can the AI investment boom truly offset the inflationary pressures from ongoing geopolitical conflicts?
With Mideast supply chains permanently broken, how are global firms redesigning their manufacturing and trade networks?
As AI transforms industries, what is the global strategy for the millions of workers it will inevitably displace?
PMI Index 2026: How Geopolitical Tensions and Supply Chain Shocks Are Reshaping Global Manufacturing
Overview
In March 2026, the global manufacturing sector continued to grow but faced significant disruptions that slowed its momentum. Key indicators showed that production growth had dropped to a three-month low, mainly because new orders worldwide cooled and order book growth weakened. This slowdown was closely linked to a near-stalling of global trade flows, which led to a disappointing pull-back in goods exports. As a result, manufacturing output is now expanding at a much slower pace, highlighting how external pressures and weakened demand are challenging the sector’s resilience and growth.