German business sentiment has turned decisively positive, according to the latest S&P Global Business Outlook survey. The poll finds corporate optimism at its strongest level since early 2022, breaking a two-year spell of caution that had kept investment plans on hold.

For the first time in two years, companies say they intend to raise capital expenditure, a shift S&P Global describes as a clear signal that firms expect domestic and external demand to strengthen. The brighter mood follows months of warning signs for Europe’s largest economy, including weak industrial output and concern over high energy costs, but suggests management teams now see scope to expand capacity rather than merely preserve cash.

S&P Global Ratings has raised its forecast for India's GDP growth to 6.5% for the fiscal year 2025-26, up from its previous estimate of 6.3%. The revision reflects expectations of a normal monsoon season, lower crude oil prices, income-tax concessions, and monetary easing. This upward adjustment reverses a downgrade issued last month amid global risks. S&P cited strong domestic demand and easing policy measures as key drivers supporting the improved outlook despite ongoing geopolitical instability. The rating agency also indicated that it does not anticipate significant movement in the Indian rupee or inflation levels for the fiscal year.

S&P Global Ratings has increased its forecast for India’s gross domestic product growth in the fiscal year ending March 2026 to 6.5%, up from 6.3% projected last month. The revision restores the outlook to the level earlier expected before S&P cut it in May amid concerns over global uncertainty.

The rating agency said the upgrade reflects resilient domestic demand and assumes a normal monsoon, lower crude oil prices, income-tax concessions and a gradual easing of monetary policy. Those factors, it added, should cushion Asia’s third-largest economy from external headwinds, including higher US import tariffs and geopolitical tensions in the Middle East that could affect energy costs.

S&P’s new estimate matches the Reserve Bank of India’s own 6.5% growth projection and contrasts with softer expectations for several export-oriented Asian economies. While warning that a prolonged spike in oil prices could still erode growth, S&P said current global energy supplies appear sufficient to keep price pressures contained.

The Adani Group, led by billionaire Gautam Adani, has announced an ambitious capital expenditure (capex) plan totaling $100 billion to be executed over the next six years, making it the largest capex plan by an Indian corporate. The group intends to fund this annual $20 billion investment primarily through internal accruals and debt. As part of its strategic growth initiatives, the Adani Group plans to list its airports unit by 2027. Additionally, the group will reduce stakes in mature companies to reallocate capital and invest 100% of its risk capital into new business ventures, with a significant focus on energy and infrastructure sectors through 2030. This move follows a period of financial challenges for the group and aligns with broader expectations of a doubling in corporate capex in India over the next five years, as noted by S&P Global Ratings.

Standard & Poor's is set to review France's sovereign credit rating on Friday, with the country currently holding an AA- rating and a negative outlook assigned in February. This signals a possible downgrade if no significant fiscal improvements are made.

France is projected to have the highest public deficit in the eurozone in 2025 and 2026, with the European Commission forecasting deficits of 5.6% and 5.7% of GDP. The French government's own targets are 5.4% in 2025 and 4.6% in 2026, with a goal to reduce the deficit below 3% by 2029. The country's debt is expected to reach 113% of GDP, and interest payments are estimated at 5.6% of fiscal revenues in 2025.

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Economic data from May 2025 indicates mixed performance across major global economies. Australia's S&P Global Composite PMI slightly declined to 50.6 from 51.0, with manufacturing steady at 51.7 and services easing to 50.5. Germany's composite PMI fell to 48.6, marking its first contraction of the year, driven by a slump in services which dropped to a 30-month low of 47.2, although manufacturing remained near flat at 48.8, its highest in 33 months. France showed a decline in manufacturing confidence to 97 from 99, below expectations, and business confidence held steady at 96.

The French services PMI was 47.4, slightly below forecasts, while the composite PMI rose to 48, meeting expectations. French consumer confidence fell unexpectedly to 88, a five-month low, amid concerns over financial situations and employment. Japan's manufacturing PMI improved marginally to 49.0, with services PMI declining to 50.8 from 52.4, and the composite PMI at 49.8. Retail sales in Japan showed a downturn, with nationwide department store sales down 4.5% year-on-year in April and Tokyo department store sales down 6.3%, attributed to a reduction in high-value purchases despite increased inbound tourism. The UK flash PMI indicated a private sector output contraction for the second consecutive month with a composite PMI of 49.4, manufacturing at 45.1, and services slightly above expectations at 50.2. The U.S. economy showed improvement with the S&P Global May manufacturing PMI reaching its second-best level since June 2023 at 52.1, signaling growth in both manufacturing and services sectors, though accompanied by rising prices linked to tariff impacts. The Eurozone services PMI declined to 48.9, below the expected 50.3. Overall, the data reflects uneven recovery trends with notable weaknesses in European services and consumer confidence, contrasted by resilience in U.S. manufacturing and ongoing challenges in Japanese retail.

German business sentiment has turned decisively positive, according to the latest S&P Global Business Outlook survey. The poll finds corporate optimism at its strongest level since early 2022, breaking a two-year spell of caution that had kept investment plans on hold.

For the first time in two years, companies say they intend to raise capital expenditure, a shift S&P Global describes as a clear signal that firms expect domestic and external demand to strengthen. The brighter mood follows months of warning signs for Europe’s largest economy, including weak industrial output and concern over high energy costs, but suggests management teams now see scope to expand capacity rather than merely preserve cash.

S&P Global Ratings has raised its forecast for India's GDP growth to 6.5% for the fiscal year 2025-26, up from its previous estimate of 6.3%. The revision reflects expectations of a normal monsoon season, lower crude oil prices, income-tax concessions, and monetary easing. This upward adjustment reverses a downgrade issued last month amid global risks. S&P cited strong domestic demand and easing policy measures as key drivers supporting the improved outlook despite ongoing geopolitical instability. The rating agency also indicated that it does not anticipate significant movement in the Indian rupee or inflation levels for the fiscal year.

S&P Global Ratings has increased its forecast for India’s gross domestic product growth in the fiscal year ending March 2026 to 6.5%, up from 6.3% projected last month. The revision restores the outlook to the level earlier expected before S&P cut it in May amid concerns over global uncertainty.

The rating agency said the upgrade reflects resilient domestic demand and assumes a normal monsoon, lower crude oil prices, income-tax concessions and a gradual easing of monetary policy. Those factors, it added, should cushion Asia’s third-largest economy from external headwinds, including higher US import tariffs and geopolitical tensions in the Middle East that could affect energy costs.

S&P’s new estimate matches the Reserve Bank of India’s own 6.5% growth projection and contrasts with softer expectations for several export-oriented Asian economies. While warning that a prolonged spike in oil prices could still erode growth, S&P said current global energy supplies appear sufficient to keep price pressures contained.

The Adani Group, led by billionaire Gautam Adani, has announced an ambitious capital expenditure (capex) plan totaling $100 billion to be executed over the next six years, making it the largest capex plan by an Indian corporate. The group intends to fund this annual $20 billion investment primarily through internal accruals and debt. As part of its strategic growth initiatives, the Adani Group plans to list its airports unit by 2027. Additionally, the group will reduce stakes in mature companies to reallocate capital and invest 100% of its risk capital into new business ventures, with a significant focus on energy and infrastructure sectors through 2030. This move follows a period of financial challenges for the group and aligns with broader expectations of a doubling in corporate capex in India over the next five years, as noted by S&P Global Ratings.

Standard & Poor's is set to review France's sovereign credit rating on Friday, with the country currently holding an AA- rating and a negative outlook assigned in February. This signals a possible downgrade if no significant fiscal improvements are made.

France is projected to have the highest public deficit in the eurozone in 2025 and 2026, with the European Commission forecasting deficits of 5.6% and 5.7% of GDP. The French government's own targets are 5.4% in 2025 and 4.6% in 2026, with a goal to reduce the deficit below 3% by 2029. The country's debt is expected to reach 113% of GDP, and interest payments are estimated at 5.6% of fiscal revenues in 2025.

Read more

Economic data from May 2025 indicates mixed performance across major global economies. Australia's S&P Global Composite PMI slightly declined to 50.6 from 51.0, with manufacturing steady at 51.7 and services easing to 50.5. Germany's composite PMI fell to 48.6, marking its first contraction of the year, driven by a slump in services which dropped to a 30-month low of 47.2, although manufacturing remained near flat at 48.8, its highest in 33 months. France showed a decline in manufacturing confidence to 97 from 99, below expectations, and business confidence held steady at 96.

The French services PMI was 47.4, slightly below forecasts, while the composite PMI rose to 48, meeting expectations. French consumer confidence fell unexpectedly to 88, a five-month low, amid concerns over financial situations and employment. Japan's manufacturing PMI improved marginally to 49.0, with services PMI declining to 50.8 from 52.4, and the composite PMI at 49.8. Retail sales in Japan showed a downturn, with nationwide department store sales down 4.5% year-on-year in April and Tokyo department store sales down 6.3%, attributed to a reduction in high-value purchases despite increased inbound tourism. The UK flash PMI indicated a private sector output contraction for the second consecutive month with a composite PMI of 49.4, manufacturing at 45.1, and services slightly above expectations at 50.2. The U.S. economy showed improvement with the S&P Global May manufacturing PMI reaching its second-best level since June 2023 at 52.1, signaling growth in both manufacturing and services sectors, though accompanied by rising prices linked to tariff impacts. The Eurozone services PMI declined to 48.9, below the expected 50.3. Overall, the data reflects uneven recovery trends with notable weaknesses in European services and consumer confidence, contrasted by resilience in U.S. manufacturing and ongoing challenges in Japanese retail.