June 23, 2023
United States:
US Economy Seen Skirting Recession But With Sticky Inflation
The US economy is now expected to narrowly dodge a recession this year but underlying inflation will be faster than previously thought, according to the latest Bloomberg monthly survey of economists.
Gross domestic product is now forecast to only contract in the final three months of the year, and it’s projected to merely stagnate in the third quarter instead of shrink, the June survey showed.
Europe:
Euro-Zone Activity Almost Stalls as Recession Rebound Fades
Economic momentum in the euro area almost came to a halt in June, signaling an end to the revival the bloc demonstrated since its winter downturn.
A purchasing managers index compiled by S&P Global and published Friday fell to a five-month low of 50.3, missing analyst estimates for a slight decline from May to 52.5. The slump was led by France, which has been battered by strikes, though Germany’s struggling factories also played a role.
Asia:
Japan’s Inflation Outpaces Forecast Amid Focus on BOJ Price View
Japan’s consumer prices rose at a faster pace than expected in May while the deeper inflation trend continued to strengthen, outcomes that could fuel speculation the central bank will raise its inflation forecasts in July and even tweak its stimulus program.
Prices excluding those for fresh food gained 3.2% from a year ago, decelerating from a 3.4% rise in April, the internal affairs ministry reported Friday. While the national data was consistent with the results of earlier figures for Tokyo showing the impact of a reduced levy on electricity prices, the reading still outpaced analysts’ forecast of a 3.1% increase.
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