Fear of Shortages Boosts Global Factories, But Eurozone Activity Declines

Business surveys show factories in the U.S., Asia and parts of Europe reporting a surge in activity as customers rush to place orders to avoid price rises and shortages tied to the Middle East conflict. At the same time eurozone activity has weakened, creating a split regional picture. The closure of the Strait of Hormuz is disrupting shipments of oil, natural gas and other raw materials (including helium used in chipmaking), raising supply-risk and inflation concerns. Markets are likely to see upward pressure on energy and commodity prices and renewed supply-chain uncertainty, while uneven regional manufacturing strength could weigh on Europe-focused indices and shape central-bank and policy discussions.