Economy in Brief: June 2021

Japan's trade surplus eroded to Ą43bln in May from a surplus of Ą84 bln in April. Compared to its six-month and 12-month averages, the three-month average balance shows a much reduced trade surplus. Japan's exports were dead flat in [...]

• Activity is off its November high. • Softening is evident across all regions. The Composite Housing Market Index from the National Association of Home Builders-Wells Fargo declined this month to 81 from 83 in the prior two months. [...]

The EMU trade surplus fell very sharply nearly halving itself in one-month's time as it fell to €9.4bln in April from €18.3bln March. The balance on manufacturing trade in the EMU has been very stable; the surplus on that account rose [...]

• Activity index falls for a second month. • New orders & shipments measures slow sharply. • Prices paid ease m/m, but remain strong. The Empire State Manufacturing Index of General Business Conditions fell nearly seven points to 17.4 [...]

• Industrial production gained 0.8% m/m, with manufacturing output up 0.9%. • Motor vehicle production rebounded 6.7%. • Capacity utilization highest since February 2020, before the pandemic. Industrial production rose 0.8% m/m (16.3% [...]

• Inventory gains appear to be stalling. • April business sales built on March gains. • Inventory-to-sales ratio continued to decline. Total business inventories edged down 0.2% (+1.3% y/y) during April reversing the 0.2% March rise. [...]

• Decline follows an early-spring surge and stimulus checks. • Sales weakness is broad-based. • April & March readings were upwardly revised. Total retail sales including food service and drinking establishments declined 1.3% during [...]

• May jump led by 1.5% m/m surge in prices of final demand goods. • Y/Y increases in both headline and core indexes highest in series history. • Final demand food prices up 2.6% m/m; energy prices up 2.2% m/m. The Producer Price Index [...]