Weekly Economic Outlook: September 01-07, 2025
- Remin Francis I R
- 2 days ago
- 2 min read
India’s economy continued to shine in August with strong PMI readings. The HSBC India Manufacturing PMI rose to 59.3, the fastest improvement in nearly 17 and a half years, reflecting robust demand and a near five-year high in production. New orders surged at the fastest pace in 57 months, while firms rebuilt inventories and continued hiring for the 18th straight month. On the services side, the HSBC India Services PMI came in at 62.5, still marking the strongest expansion since June 2010 despite being revised lower from the flash estimate. Foreign sales showed notable strength, and firms passed rising input costs to customers at the steepest rate in over 13 years. Together, this pushed the HSBC India Composite PMI to 63.2, a 17-year high. Supporting this upbeat outlook, India’s forex reserves also inched up to USD 694.23 billion, reaffirming macro stability.
Inflation in the eurozone ticked higher, with consumer prices rising 2.1% in August, just above July’s pace and market expectations. Food prices remained a key driver, while energy costs fell at a slower rate. Core inflation held steady at 2.3%, its lowest since January 2022, offering some comfort that pressures are stabilising.
The US economy presented a mixed picture. The ISM Manufacturing PMI rose slightly to 48.7, but still indicated contraction for the sixth straight month, weighed by weaker production and falling backlogs. Services activity provided some relief, with the ISM Services PMI climbing to 52, its best reading in six months, though employment remained under pressure. The labour market showed further signs of cooling: nonfarm payrolls rose by just 22,000 in August, far below expectations, while the unemployment rate edged up to 4.3%, the highest since October 2021. Job openings also dropped sharply to 7.18 million, their lowest in nearly a year. Tariffs remained a recurring theme, cited as a drag across industries.
In Canada, the labour market weakened further. The unemployment rate climbed to 7.1%, a four-year high, as net employment fell by 66,000. Youth unemployment stayed elevated at 14.5%, pointing to broader challenges in seasonal hiring and slowing domestic growth.
Want to read more?
Subscribe to finsightsbysquareleague.com to keep reading this exclusive post.
