India has recorded the highest year-on-year growth in business investment confidence among 32 economies surveyed for Q3 2025, according to the Dun & Bradstreet (D&B) Global Business Investment Confidence Index. The country registered a robust 12.6% increase, despite a marginal 1.4% dip in quarterly confidence, reaffirming its position as a resilient and optimistic investment destination.
Global Investment Confidence Falls for Third Straight Quarter
The D&B report revealed a 13.1% quarter-on-quarter (q/q) drop in the Global Business Investment Confidence Index—marking the third consecutive quarter of decline. All five sub-indices contributing to the overall score recorded declines, unlike Q2 2025, where only capital expenditure and workforce expectations had shown negative trends.
46.8% of global businesses cited supply chain stability as the top influencing factor for investment decisions in Q3. In contrast, concerns like tariff uncertainty and domestic interest rates had minimal impact. This aligns with the Global Supply Chain Continuity Index, which remains the weakest among all indices at 99.9 for Q3.
Advanced Economies Hit Harder Than Emerging Markets
The fall in investment confidence was steeper in advanced economies, even when the U.S.—which recorded a sharp 16.7% drop—was excluded. Among major economies:
- France, Japan, Germany, and Spain saw the steepest declines, erasing gains from Q2.
Meanwhile, in emerging markets:
- Russia (-26.1%), Brazil (-23.9%), and South Africa (-20.7%) led the downturn.
- In Brazil, aggressive monetary tightening by the Central Bank has curbed capital spending.
- In South Africa, exposure to U.S. auto tariffs weighed heavily on investment sentiment.
Across sectors, manufacturing confidence dropped by 17.2%, compared to 10.8% in services. Within manufacturing, key sub-sector declines included:
- Capital goods: -33.1%
- Food: -26.9%
- Automotive: -26.4%
However, the chemicals manufacturing sub-sector saw a modest 14.8% decline, possibly due to exemptions from U.S. tariffs, especially on pharmaceutical components.
Positive Outlook: Capacity Utilisation on the Rise
On a brighter note, expected capacity utilisation rose to:
- 68.9% in the services sector
- 69.3% in manufacturing
This marks the first quarter-on-quarter increase since Q1 2024, signaling a potential rebound in future capital expenditure. However, the figures remain below the 2024 averages of 73.9% (services) and 74.1% (manufacturing).
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