Weekly Economic Outlook: March 23-29, 2026
- Remin Francis I R
- 3 days ago
- 2 min read
Last week’s global economic data tells a clear story: growth is slowing, but it’s far from collapsing.
Let’s start with Japan, where inflation eased to 1.3% in February 2026 from 1.5%. This is the lowest since March 2022 and, importantly, below the central bank’s 2% target. Core inflation also dropped to 1.6%, while prices declined 0.2% month-on-month for the third straight month. Falling energy costs and softer food inflation are helping here, signalling that price pressures are cooling.
Back home, the picture is slightly more complex. India’s HSBC Composite PMI dropped to 56.5 in March from 58.9, marking the slowest expansion since October 2022. Both manufacturing (53.8) and services (57.2) saw moderation. The key reasons? Ongoing Middle East tensions, volatile markets, and persistent inflation pressures. Domestic demand has softened, with new orders growing at their slowest pace in over three years.
But it’s not all negative; export demand is surprisingly strong, hitting record highs across sectors. Companies are also staying optimistic, focusing on efficiency and new client additions.
Looking at Europe, growth is barely holding up. The Eurozone Composite PMI slipped to 50.5, indicating near-stagnation. Services activity has almost stalled, while supply chain disruptions and rising costs, largely due to geopolitical tensions, are starting to bite again.
The UK shows a similar trend. Inflation remains steady at 3%, but cost pressures are rising sharply. Both manufacturing and services PMIs indicate slowing growth, with companies facing delays, higher input costs, and weaker global demand.
On the domestic liquidity side, India’s loan growth remains strong at 13.80%, but deposit growth has slowed to 10.80%, which is something to watch. Meanwhile, forex reserves declined to $698,350 million, down from recent highs.
The global economy is clearly feeling the pressure from geopolitical risks and inflation. Growth is slowing across regions, but resilience, especially in exports and employment, suggests we are not heading into a sharp downturn just yet.
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