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UK retail survey flags marked hit to discretionary spending

Chris Scicluna
Emily Nicol
  • Japanese PPI data illustrate elevated pipeline price pressures
  • German ZEW investor survey likely to echo pessimism recorded in last week’s Sentix survey
  • US small business survey likely to report increased pessimism

 

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LDP wins clear majority in Japan’s Upper House election

Chris Scicluna
Emily Nicol
  • Japanese machine orders fell in line with expectations in May, but remain on track for a sizeable increase in Q2
  • Chinese inflation beats expectations, but remains subdued
  • Euro area IP is likely to have remained subdued as supply constraints continue to hamper production; UK GDP set to have remained subdued in May

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Japanese household spending falls in May

Emily Nicol
  • Japanese household spending falls in May amid higher prices
  • Japanese economy watchers less upbeat about conditions
  • UK jobs survey suggests softest jobs growth for sixteen months 

 

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German IP up, but set to subtract from GDP growth in Q2

Chris Scicluna
Emily Nicol
  • BoJ’s consumption activity index signals a solid rebound in spending on services 
  • The ECB account of the 9 June meeting that pre-committed to rate hikes in July and September will be scrutinised
  • The minutes of the FOMC’s June meeting reaffirmed the Fed is on an aggressive path of tightening

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Japanese household inflation expectations revised higher

Chris Scicluna
Emily Nicol
  • German factory orders avoid fourth successive drop but trend still very weak; manufacturing turnover up
  • Euro area retail sales figures likely to remain subdued 
  • Politics dominate in the UK, with a majority of Brits wanting Johnson to quit; sterling to benefit as likelihood of Johnson’s departure increases

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