TOKYO (Reuters) : European manufacturing activity improved in May, inching further toward stabilization and approaching the growth threshold, but Asian factory activity shrank as soft demand in China and U.S. tariffs took a heavy toll, surveys showed on Monday, highlighting the darkening outlook for the once fast-growing region. U.S. President Donald Trump’s flip-flopping on trade tariffs has left firms unsure about where the charges will settle. Still, production increased for a third consecutive month in the common currency area, supported by a near-stabilization in demand. The HCOB Eurozone Manufacturing Purchasing Managers’ Index (PMI) rose to 49.4 in May from 49.0 in April, marking a 33-month high and in line with a preliminary estimate but remaining below the 50.0 threshold separating growth from contraction. France’s PMI moved closer to breakeven at 49.8, a 28-month high. But Europe’s largest economy, Germany, remained the weakest performer among the big euro zone members with a PMI of 48.3. “I wouldn’t read too much into the numbers today. A bit up for France, a bit down for Germany,” said Salomon Fiedler at Bernberg. “For the eurozone as a whole, we are stable.” In Britain, outside the European Union, the downturn was less steep than first feared in May, but output, orders and jobs continued to drop as companies cited recent tax hikes and Trump’s tariffs. Asia struggles Trade-reliant Japan and South Korea continued to see manufacturing activity contract in May as Trump’s automobile tariffs cloud the outlook for exports. Adding to the gloom, an official survey on Saturday showed China’s manufacturing activity shrank in May for a second month in a sign of weakness in the world’s second-largest economy. With many Asian economies making little progress in trade negotiations with the United States, uncertainty will likely keep companies from boosting production or spending, analysts said. “It’s hard to expect a pick-up in Asia’s manufacturing activity any time soon with countries in the region slapped with quite high ‘reciprocal’ tariffs,” said Toru Nishihama, chief emerging market economist at Dai-ichi Life Research Institute. “With domestic demand weak, China is flooding Asia with cheap exports, which is also putting deflationary pressure on the region’s economies,” he said. Japan’s final au Jibun Bank manufacturing PMI stood at 49.4 in May, up from April but stayed below 50.0 for an 11th successive month. The PMI for South Korea, Asia’s fourth-largest economy, stood at 47.7 in May, staying below 50 for a fourth month due to frail demand and the hit from U.S. tariffs, S&P Global’s survey showed. Both Japan and South Korea saw their economies contract last quarter, as Trump’s tariffs and uncertainty over U.S. trade policy weighed on exports and corporate activity. India’s manufacturing growth slowed to a three-month low in May as demand softened amid price pressures and geopolitical tensions, a survey showed on Monday. There is little sign that conditions will improve. On Friday, Trump said China had violated a two-way deal to scale back tariffs, whereas China contended it had maintained communication on trade with the United States. Trump also announced a doubling of worldwide steel and aluminum tariffs to 50%, once again rattling international trade. Japan and the United States on Friday agreed to hold another round of trade talks ahead of the G-7 summit in June, but Japan’s top tariff negotiator said no deal would be reached without concessions on all U.S. tariffs, including on automobiles. Vietnam, Indonesia and Taiwan also saw factory activity contract in May, their surveys showed.