Global Weekly Economy Briefing: November 3–7, 2025

A week of PMIs and price data sketched the same macro silhouette: manufacturing is soft but not collapsing, services are doing most of the growth lifting, and inflation pressure is easing unevenly rather than disappearing.

Reserve cushions in Asia widened (notably Korea and China), lowering FX tail-risks even as China’s external demand cooled.

Markets read this as “resilience without boom,” keeping policy paths data-dependent rather than pre-committed.

United States

Factories sagged (ISM 48.7; prices 58.0) while services firmed (ISM non-manufacturing 52.4 with orders 56.2). Gasoline inventories fell sharply despite a crude build, and GDPNow held near 4.0%.

What it means: growth is still driven by services and domestic demand, but goods disinflation has less room to run if input prices stay sticky.

For the Fed, this mix argues for patience—not fresh hikes—but it also argues against rapid cuts unless labor or demand cracks.

Canada

Jobs rose 66.6k, mostly part-time; unemployment slipped to 6.9%, wages for permanent staff ran 4.0%, and PMIs improved toward 50.

What it means: the economy is cooling in composition, not collapsing in level. The Bank of Canada can stay on hold longer, letting prior tightening work, but a rekindling of wage-price pressure would delay any easing.

Europe and UK

Eurozone manufacturing hovered at 50. Germany’s orders and industrial output rose m/m, France’s industry rebounded even as payrolls fell, and UK house prices inched higher with the BoE holding steady (5–4 to keep vs cut).

What it means: the continent is edging out of a shallow industrial funk, but construction weakness and flat retail signal limited momentum.

Policy bias is toward “higher for longer, then gradual,” with sterling and euro moves more about relative growth than rate surprises.

Asia-Pacific

RBA on hold; Australia’s surplus widened as exports jumped. Korea’s CPI ticked up to 2.4% and FX reserves climbed.

China’s Caixin services stayed in expansion but exports turned negative y/y and the trade surplus narrowed. Reserves nonetheless rose to $3.343T. Japan’s PMIs stayed mixed and the monetary base contracted.

What it means: Asia’s buffers (and policy credibility) are strong enough to smooth currency swings, but China’s softer trade pulse caps the region’s upside unless domestic services offset.

Australia benefits from firmer export volumes, while Korea’s gentle inflation keeps cuts on the table later if growth slows.

Latin America and Africa

Banxico cut to 7.25% as Mexico’s inflation eased to 3.57% y/y and core near 4.3%; Brazil’s producer prices and IGP-DI softened, and the trade surplus widened; South Africa’s PMI slipped but reserves rose.

What it means: disinflation plus external cushions lower macro risk premia. Mexico can engineer a shallow easing cycle without destabilizing the peso if disinflation persists;

Brazil’s benign pipeline inflation supports carry with falling term premiums; South Africa’s stronger reserves buy time against growth wobbles.

Bottom line

The world economy remains two-speed: solid services and patchy industry. Inflation is drifting down, not tumbling, and commodity balances are tight beneath the surface.

For investors and policy readers: expect steady-hand central banks, slower but positive global growth, FX anchored by Asian reserves, and a market regime that rewards balance-sheet strength and service-led exposures more than deep-cyclical, goods-heavy bets.

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