Weekly Economic Outlook: October 27 - November 2, 2025
- Remin Francis I R
- Nov 3, 2025
- 2 min read
As we step into November, the global economy continues to navigate shifting growth patterns and policy adjustments, while India’s industrial engine keeps humming steadily. Here’s a quick look at what shaped markets and economies this week.
India’s industrial production expanded 4% year-on-year in September 2025, holding close to the 4.1% growth seen in August and comfortably above the 2.6% market consensus. This marks the 12th straight month of growth, with output staying above the 4% threshold for three consecutive months, a solid sign of resilience despite external trade pressures.
The momentum was led by manufacturing, which rose 4.8% compared to 3.8% in August, making up nearly 80% of total industrial activity. However, electricity output eased slightly (3.1% vs 4.1%) and mining saw a modest decline (-0.4% vs 6.6%). Together, these reflect a still-strong industrial pulse as India maintains its position as the G20’s fastest-growing economy.
Globally, economic signals were mixed. Japan’s consumer confidence inched up to 35.8 in October, its best since December 2024, as optimism spread across income, employment, and spending expectations. Meanwhile, China’s manufacturing PMI fell to 49.0, marking a seventh consecutive month of contraction, as price competition intensified amid weak demand.
Central banks retook centre stage. The U.S. Federal Reserve delivered another 25 bps cut, bringing rates to 3.75%- 4.00%, citing cooling job data and persistent inflation. The Bank of Canada also trimmed its rate to 2.25%, likely pausing its easing cycle. At the same time, the Bank of Japan and European Central Bank held rates steady, underscoring cautious optimism and confidence in stability.
Inflation in the eurozone eased slightly to 2.1%, edging closer to the ECB’s target, while in India, foreign exchange reserves slipped to $695.36 billion as of October 24 from $702.28 billion a week earlier, still close to historic highs and offering strong currency support.
In summary, India’s steady factory output, strong reserves, and structural resilience continue to stand out in a global landscape marked by policy divergence and uneven recovery.
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