US: Manufacturing PMI (May): 57.5 vs 57.7 expected (prior: 59.2)
- Business sentiment has decreased on slower production and new orders from the prior month.
- Costs have continued to rise.
US: Services PMI (May): 53.5 vs 55.2 expected (prior: 55.6)
- Sentiment has significantly declined over the month: rising prices and slower demand after the post-pandemic rebound have weighed down on the outlook; prices remained on the rise. Employment remained positively oriented.
US: Richmond Fed manufacturing (May): -9 vs 10 expected (prior: 14)
- A sharp reversal in sentiment from the prior month; opinions have deteriorated on current situation on all major sub-components such as new orders and shipments.
- The 6-month view has also declined, but the index stayed positive; lower new orders and lower business conditions have driven the decrease.
US: New home sales (Apr.): 591k vs 749k expected (prior: 709k revised from 763k)
- A large fall in sales from the prior month; levels were back to 2019 pace of sales.
- The fall was seen in all regions and inventories have rebounded. Prices remained sustained (19.6% y/y for median prices) and have shown just moderate easing from 21% y/y the prior month.
Eurozone: PMI Manufacturing (May): 54.4 vs 54.7 expected (prior: 55.5)
- Flash estimates have decreased more in France than in Germany over the month. The index pointed to decreasing confidence on future activity and weakening new orders. Disruption related to war in Europe and to China is mentioned as constraints on production.
- Prices have increased further but the pace was seen as moderating after some moderation in costs. Employment remained on the rise.
Eurozone: PMI Services (May): 56.3 vs 57.4 expected (prior: 57.7)
- Sentiment has weakened after the strong rebound following the end of the pandemic.
- While demand remained strong for travel-leisure, i has decreased in services for industrial and finance sectors.
- The index has more declined in Germany than in France over the month in flash estimates.
UK: PMI Manufacturing (May): 54.6 vs 55 expected (prior: 55.8)
- Business confidence has decreased further as new orders and exports have decreased and activity still faced disruption from China and war in Europe.
UK: PMI Services (May): 51.8 vs 57 expected (prior: 58.9)
- Sentiment has strongly decreased over the month as expectations have declined from the prior month; high prices and slower demand have weighed down on confidence but demand for leisure remained sustained.
France: Business confidence (May): 106 vs 105 expected (prior: 106)
- While total business confidence was stable, confidence in the manufacturing sector has decreased from 108 the prior month to 106; new orders have decreased, and opinions have declined on future production.
- The index has decreased from the latest high levels, but the manufacturing index remained above the levels seen in 2019.
Brazil: CPI (May): 0.59% m/m vs 0.45% expected (prior: 1.73%)
- Housing -energy costs have decreased over the month, but prices of clothes, healthcare and food remained sustained over the month.
- Yearly trend has increased further from 12.03% y/y the prior month to 12.2%.