Tuesday, 02 January 2024 12:17 GMT

Global Economy News Briefing For September 10, 2025


(MENAFN- The Rio Times) Global economic signals midweek revealed strength in Southern Europe, fresh optimism in Japan, and steady inflation dynamics in Norway, while Asia-Pacific sentiment showed rising inflation expectations.

In Europe, Spain's industrial production grew 2.5% year-on-year in July, extending its recovery from June's 1.9%. Italy also posted gains, with output rising 0.4% month-on-month and 0.9% annually.

At auction, Italian 12-month BOT yields edged up slightly to 2.03%, confirming stable funding costs. Policymakers met at the ECOFIN summit, with German Bundesbank Vice President Buch signaling caution over inflation persistence and fiscal risks.

Japan delivered a major upside surprise. The quarterly BSI Large Manufacturing index rose to 3.8 from -4.8, marking the first positive reading in over a year. Producer prices in August grew 2.7% annually but fell 0.2% month-on-month, pointing to easing cost pressures.

Capital flows supported confidence, with Japanese investors buying ¥245.1 billion in foreign bonds, while overseas investors returned to Japanese equities with ¥108.6 billion in net inflows.



Elsewhere in Asia-Pacific, Australia's September MI inflation expectations rose to 4.7%, sharply higher than August's 3.9%, reflecting concern over household cost pressures.

In Scandinavia, Norway's August CPI remained steady at 3.5% year-on-year, with core inflation unchanged at 3.1%. On a monthly basis, prices fell by 0.6%, partly reversing July's spike.

Latin American sentiment softened slightly, with Mexico's IPSOS confidence index at 52.74, down from 53.15, while Canada's index held near 47.8, signaling stability but little momentum.

Overall, the day highlighted resilience in Southern Europe and Japan, where industry and business sentiment are showing clear gains, contrasted by inflation caution in Australia and persistent price stickiness in Norway.

The divergence underscores the uneven balance between growth prospects and inflation management in the global economy.

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