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Global Manufacturing Weakens as Energy Crisis Fuels Inflation Surge

Manufacturing activity is contracting worldwide as persistent inflationary pressures mount during the third month of war-related energy disruptions. Factory output has begun to stall, with supply-chain stress indicators climbing to pandemic-era levels and signaling potential headwinds ahead. The conflict's ripple effects are particularly notable in Europe, where France's economy shows visible strain according to central bank surveys. Central banks face mounting concerns over a potential resurgence of high inflation as energy costs remain elevated and global growth momentum weakens. Reduced manufacturing demand combined with elevated pricing pressures is creating uncertainty for businesses adjusting to slower economic conditions and higher operational costs.