Weekly Economic Outlook: June 23-29, 2025
- Kiran S N
- Jun 30
- 1 min read
India
India’s flash PMI data for June surprised on the upside, with the Composite PMI jumping to 61.0, its highest in 14 months, well above expectations (59.4). Holding strong at 58.4 in manufacturing and 60.7 in services, the indicators reflect strong momentum fuelled largely by surging export orders, domestic demand, and fresh hiring, especially in the factory space. Input cost inflation eased to a ten-month low, giving firms pricing flexibility, suggesting room for the Reserve Bank of India (RBI) to stay accommodative.
Meanwhile, India’s M3 money supply surged 9.8% year-over-year, surpassing the 9.5% prior reading. Since it rides on the back of higher PMI data, there is no need to be alarmed of any impending Inflation risk. Meanwhile, foreign exchange reserves slightly declined to $697.94 billion from the previous $698.95 billion.
World Economies
In the United States, May’s Core PCE Price Index (an important inflation measure) edged up by 0.2%, aligning with expectations but showing a slight deceleration from prior trends. Personal income fell to -0.4%, reversing the 0.7% increase from the previous month, while personal spending dipped to -0.1%. These figures hint at tightening consumer budgets amidst a softer inflationary environment, potentially easing pressure on the Federal Reserve’s policy stance.
Across the Atlantic, the UK’s flash PMIs for June presented a mixed bag. Manufacturing PMI showed a modest recovery to 47.7 from 46.4, remaining in contraction but signaling a less severe slowdown. Meanwhile, Services PMI climbed to 51.3, surpassing expectations and maintaining expansion territory. Together, these suggest resilience in the UK’s service sector while the manufacturing sector continues to struggle, reflecting broader economic pressures.
Want to read more?
Subscribe to finsightsbysquareleague.com to keep reading this exclusive post.
