India sees strong 12.6% growth in investment confidence in Q3 2025, highest among 32 economies: Report
According to the report, the Global Business Investment Confidence Index fell 13.1 per cent quarter-on-quarter (q/q) for Q3 2025, the third consecutive quarter of contraction.
The drop in confidence is broad-based, with businesses reporting sharp declines in all five sub-indices, compared with Q2 2025, when only the amount of capital expenditure and the size of the workforce were expected to decline.
The report highlights that nearly half of businesses (46.8 per cent) reported supply chain stability as very important to determining investments for Q3 2025, while tariff uncertainty was the lowest rated determining factor, similar to domestic interest rates. This aligns with the findings reported earlier in this report; the Global Supply Chain Continuity Index is the lowest of all our indices, at 99.9 for Q3.
In the global scenario, the investment confidence fell more in advanced economies than in emerging economies. Even after excluding the U.S., which has the largest weight and fell 16.7 per cent q/q, confidence in advanced economies fell more than in emerging economies. France, Japan, Germany, and Spain recorded the largest falls in advanced economies, reversing improvements made in Q2.
Among emerging economies, the largest q/q falls were recorded by the Russian Federation (-26.1 per cent), Brazil (-23.9 per cent), and South Africa (-20.7 per cent). The Central Bank of Brazil has aggressively increased the Selic rate by 425bps since last year, heavily dampening capital expenditure plans. The U.S. is South Africa's third-largest market for automobile exports, so businesses in South Africa are greatly exposed to 25 per cent tariffs.
The manufacturing sector recorded a larger drop (-17.2 per cent) in investment confidence than the services sector (-10.8 per cent) for Q3 2025. The biggest declines were the manufacturers of capital goods (-33.1 per cent), food (-26.9 per cent), and automotives (-26.4 per cent). Of the manufacturing sub-sectors, the manufacturing of chemicals reported the smallest drop in confidence, of -14.8 per cent, albeit still a significant decline. This may reflect the exemptions to new U.S. tariffs, particularly those related to pharmaceutical products.
Positively, for Q3 2025, businesses reported an expected capacity utilisation of 68.9 per cent for the services sector and 69.3 per cent for the manufacturing sector, the first q/q increase since Q1 2024, according to the report.
"Though this is a positive signal for future capital expenditure, the level remains below the 2024 averages of 73.9% and 74.1% for services and manufacturing, respectively," the report added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Observer
8 hours ago
- Observer
EOR share of PDO's crude oil output to spike to 28% by 2031
MUSCAT: Crude oil output based on Enhanced Oil Recovery (EOR) technologies is projected to account for a significant 28% of Petroleum Development Oman's (PDO) total annual crude oil production by 2031, up from 19% currently, according to the majority state-owned energy company. The projected increase underscores the growing importance of EOR—a set of advanced techniques used to boost oil recovery from reservoirs after primary and secondary methods become less effective—in PDO's long-term production strategy. EOR methods typically help maximize recovery by 30–50% from some of Oman's maturing oilfields. Notably, the contribution of EOR to PDO's overall crude production has been steadily rising over the past decade, climbing from 5% in 2014 to 12% in 2020, and further to 19% in 2025. 'In 2024, PDO continued its efforts to boost the future contribution of Enhanced Oil Recovery (EOR) to oil production. It is projected that by 2031, EOR projects will account for approximately 28% of our total output. We currently operate a variety of commercial-scale EOR schemes, including thermal applications, miscible gas injection (MGI), and chemical EOR. Additionally, further portfolio optimisation and the introduction of new opportunities into the hydrocarbon maturation funnel have increased production contributions from primary and secondary processes,' the company stated in its 2024 Sustainability Report. In 2024, PDO advanced the rollout of EOR technologies across a number of assets in its Oil South portfolio. A Final Investment Decision (FID) was taken on a polymer flooding project in the Haima West field (Mahwis reservoir) within the Marmul cluster. The project is expected to recover an additional 36 million barrels of oil by 2045, with an on-stream date set for 2026. Also targeted for extensive polymer flooding is Nimr, which hosts oilfields deemed 'well-suited' for this type of EOR technology. Last year, PDO approved two FIDs for polymer flood projects in the Nimr-A and Nimr-E oil fields—forming Wave 1 of polymer projects. 'The Nimr-A project is projected to recover 20 million barrels, while Nimr-E is expected to add 22 million barrels, both slated to be onstream by 2026. These projects will require the construction of new injection facilities and polymer injector wells. A new chemical EOR (cEOR) Category Management framework will be applied to expedite contract awards and reduce costs,' PDO stated. In other updates during the year, the Harweel 2AB Project (Zalzala Field) increased its gas injection rate from 3 million to 4 million cubic metres per day (m³/d), improving cumulative incremental oil recovery to 54 million barrels to date. Similarly, under the RHIP Tranche 1 Projects, the SAK A2C produced 43 million barrels of additional oil—up from previous estimates of 29 million barrels. Incremental recovery from SAK A3C also rose, from 8.7 million barrels to 12.6 million barrels. However, the Al Noor Phase 3A MGI Project saw a downward revision in its incremental recovery estimate, with only 3 million barrels expected—significantly lower than the earlier projection of 12.1 million barrels, the company noted. Production from steam-based EOR projects also dipped in 2024. The Amal Steam Project reported an average oil production of 2,285 m³/d (13,400 bpd) in 2024, down from 2,626 m³/d (16,500 bpd) in 2023. Likewise, Qarn Alam Steam production declined to 3,302 m³/d (20,768 bpd) in 2024, compared to 3,703 m³/d (23,291 bpd) the previous year.
Observer
8 hours ago
- Observer
MoU signed for green hydrogen equipment project in Oman
MUSCAT: Omani tech specialist United Engineering Services (UES) has announced the signing of a Memorandum of Understanding (MoU) with China's Sungrow Hydrogen Sci & Tech Co for the establishment of a manufacturing facility in the Sultanate of Oman dedicated to producing key equipment for the country's green hydrogen industry. Muscat-based UES, a member of the well-diversified MB Holding Group, specialises in the provision of high-tech engineering services to the local and international oil & gas, marine, and defence industries. In a post on Monday, August 4, 2025, UES CEO Dr Salim al Harthy stated: 'This partnership is a strategic step in expanding our renewable energy footprint and positioning Oman as a regional hub for advanced hydrogen technologies." The manufacturing facility will focus on producing and assembling electrolysers, gas separation and purification systems, and related infrastructure for both local use and regional export, he added. Xiaowei Duan, Head of the AMEA Region and Key Account Director at Sungrow Hydrogen, commented: 'We are proud to join forces with a respected Omani industrial leader. Together, we aim to bring cutting-edge hydrogen solutions to Oman.' The pact marks UES's first foray into Oman's pivotal green hydrogen industry. Its Chinese partner, Sungrow Hydrogen, is a major manufacturer of key hardware for the global green hydrogen and clean energy sector. The company designs and manufactures alkaline (ALK) and PEM electrolysers, power systems, gas-liquid separators, intelligent hydrogen controls, and purification systems. It operates China's first automated assembly line for ALK electrolysers at its Intelligent Manufacturing Centre, with an annual production capacity of 3 GW. Earlier this year, Sungrow Hydrogen announced that it had secured a contract for the supply of water electrolysis hydrogen production equipment for Oman's first green ammonia project, currently under implementation at Duqm. Green Hydrogen and Chemicals Company SAOC (GHC), a wholly owned subsidiary of India-based renewable energy developer ACME Group, is developing the 100,000 tonnes per annum (tpa) green ammonia plant at the Duqm Special Economic Zone. This capacity is envisioned to expand to 900,000 tpa over multiple phases. Sungrow Hydrogen stated that it had been awarded the 'biggest share' of a contract to supply electrolyzer equipment for ACME's 320 MW-capacity green ammonia project in Oman. Under the contract, Sungrow Hydrogen will provide multiple sets of 1,000 Nm³/h (normal cubic metres per hour) alkaline-type hydrogen production equipment and flexible green hydrogen production solutions. Delivery is scheduled to be completed within 2025, the company added in a post.
Times of Oman
11 hours ago
- Times of Oman
Trump warns of "substantially raising tariff paid by India" over Russian oil import
Washington DC: US President Donald Trump on Monday said that the United States will "substantially raise" the tariff paid by India for buying "massive amounts of Russian Oil", stating that much of the oil purchased from Moscow is being sold in the open market "for big profits". Trump's announcement, made on his social media platform Truth Social, came days after he announced a 25 per cent reciprocal tariff on India and an unspecified penalty for importing oil from Russia. "India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits. They don't care how many people in Ukraine are being killed by the Russian War Machine. Because of this, I will be substantially raising the Tariff paid by India to the USA. Thank you for your attention to this matter!!!" the US President said in the post. India has defended its sovereign right to conduct energy policy based on national interest. The government has clarified that India's energy purchases are guided by market dynamics and national interests. "You are aware of our broad approach to energy sourcing requirements, that we look at what is available in the market and the prevailing global situation. We are not aware of any specifics," MEA Spokesperson Randhir Jaiswal said last week, answering queries on Trump's announcement of a penalty for purchasing Russian oil. Answering another query, Jaiswal said India's relations with any country are based on their own merit and shouldn't be viewed through the lens of third countries. "Our ties with any country stand on their merit and should not be seen from the prism of a third country. As far as India-Russia relations are concerned, we have a steady and time-tested partnership," he added. Answering a query on Friday, Trump indicated that if India stops buying Russian, it will be a good step. "I understand that India is no longer going to be buying oil from Russia. That's what I heard, I don't know if that's right or not. That is a good step. We will see what happens..." said Trump. Trump announced the imposition of 25 per cent tariffs on Indian goods and a penalty for importing Russian oil in the last week of July, even as there were hopes of an interim India-US trade that would have otherwise helped avoid elevated tariffs. There are apprehensions that global crude prices could jump to USD 200 a barrel if India were to stop buying Russian oil, which will severely harm consumers.
