The worldwide PMI surveys – produced by S&P Global in
association with ISM and IFPSM for J.P.Morgan – signalled a renewed
upturn in worldwide business activity growth in October.
The US continued to lead the major developed economies in
terms of output growth, but growth also notably picked up in the
eurozone, while India continued to lead emerging markets as growth
dipped lower in mainland China.
However, although current growth picked up in October,
business confidence about the year ahead dropped to one of the
lowest levels seen since the pandemic.
Looking ahead, the gap between current global output growth
and business expectations for the year ahead is among the widest
seen in the survey history, suggesting downside risks to growth and
employment in the coming months barring an improvement in business
confidence.
Faster global growth in October
A strong start to the fourth quarter was signalled for the
global economy by S&P Global Market Intelligence’s PMI surveys.
The J.P. Morgan Global Composite PMI Output Index, covering
manufacturing and services in over 40 economies, rose from 52.5 in
September to 52.9 in October – the joint-highest over the past 17
months.
Historical comparisons indicate that the latest PMI is broadly
consistent with global GDP growing at an annualized rate of 3.0%.
This follows a robust third quarter, for which the PMI signalled a
2.8% pace of growth.
The survey data therefore suggest that global economic growth
has improved markedly since the low seen back in April, when
activity slowed in response to US tariff uncertainty, reviving to a
pace close to long-term trend.
US leads developed world economic growth to fastest for
one-and-a-half years
Growth picked up across the developed economies to the fastest
for nearly one-and-a-half years in October, led again by the US,
which has reported the fastest growth of the largest economies
throughout much of this period. Output rose at an increased rate
across both manufacturing and services in the US, taking the
overall pace of expansion to the second-fastest seen so far this
year.
The eurozone also reported a notable improvement in performance,
notching up its best expansion since May 2023, with a marked upturn
in the service sector accompanied by a sustained but more modest
increase in manufacturing output.
While UK growth likewise accelerated, led by the service sector,
the increase was flattered by the reopening of production at JLR
and its supply chains, following September’s cyber-attack, which
helped manufacturing rebound.
Growth also edged higher in Japan as continued robust service
sector growth was joined by a moderation in the manufacturing
sector’s decline, and Canada reported a return to growth for the
first time since last November. Growth returned to the Canadian
service sector and manufacturing came close to stabilizing.
That left Australia as the only major developed economy to
report a tempered performance in October, albeit with its expansion
remaining solid by standards seen over the past two years, thanks
to sustained service sector growth.
Sustained emerging market growth reported but Brazil’s downturn
persists
Emerging market growth slowed slightly in October but remained
among the strongest seen over the past year, albeit reflecting
mixed performances.
While India again led the four ‘BRIC’ economies in terms of
growth across both goods and services, its rate of expansion slowed
to a five-month low as a softer service sector upturn offset an
improved manufacturing performance.
Mainland China also continued to report ongoing growth in
October, recovering further from the brief slip into contraction
back in May, though the pace of expansion cooled thanks to an
export-led slowdown in manufacturing and a moderation of service
sector growth.
Output meanwhile fell in Brazil for a seventh straight month
but, after contracting at the sharpest rate for nearly three years
in September, Russia’s economy showed signs of steadying in
October.
Global business growth expectations relapse to near three-year
low
Less encouraging was the news on business optimism. Business
expectations about the year ahead fell globally in October as
companies continued to report confusion and uncertainty regarding
US trade policy in particular. Perceived economic growth risks also
remained elevated by historical standards. Sentiment fell globally
in both manufacturing and services.
Business sentiment is now back down to the joint-lowest seen
over the past three years if the slump in optimism seen in the
immediate aftermath of April’s US tariff announcements is
excluded.
Expectations have fallen further below survey long-run averages
in mainland China, the US, the eurozone and Japan. An exception is
the UK, where business sentiment has improved to meet its long-run
average for the first time in a year. Only India and Spain are
reporting sentiment to be running above their respective long-run
averages.
Unusual, but not unprecedented, gap between current and
expected output growth
The extent to which global output expectations for the year
ahead have fallen below current output growth is unusual, and
points to elevated downside risks to the business outlook, both in
terms of output growth and employment, though is not unprecedented.
The last time the global PMI survey has seen such a wide gap
between current and expected future output was during 2019, when
US-China trade tensions escalated during the first Trump
presidency. Back then, moves toward trade agreements in late-2019
helped alleviate outlook concerns, helping to stabilize growth
(only for the COVID-19 pandemic to then derail the recovery).
Access the Global PMI press release
here.
Chris Williamson, Chief Business Economist, S&P
Global Market Intelligence
Tel: +44 207 260 2329
chris.williamson@spglobal.com
© 2025, S&P Global. All rights reserved. Reproduction in whole
or in part without permission is prohibited.
Purchasing Managers’ Index™ (PMI®) data are compiled by S&P Global for more than 40 economies worldwide. The monthly data are derived from surveys of senior executives at private sector companies, and are available only via subscription. The PMI dataset features a headline number, which indicates the overall health of an economy, and sub-indices, which provide insights into other key economic drivers such as GDP, inflation, exports, capacity utilization, employment and inventories. The PMI data are used by financial and corporate professionals to better understand where economies and markets are headed, and to uncover opportunities.
Learn more about PMI data
Request a demo
This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.