Download Our App
Global growth is cooling this year and the reason is not hard to spot — an energy shock from the Iran war has rippled through economies everywhere. Yet in the middle of that slowdown, India is still managing to stand out.
A worsening shortage of skilled workers could delay construction of new semiconductor plants across the US and limit future chip output, unless industry players pool resources and government funding continues, Bloomberg reported.
German exports rose unexpectedly in May, increasing by 0.9% compared with the previous month, data from the federal statistics office showed on Thursday. The result compared with a forecast 0.3% decrease in a Reuters poll.
The Bank of Japan said on Thursday the U.S.-Israeli war on Iran is likely to prod more firms to raise prices later this year, signalling caution over mounting inflationary pressures that could bolster the case for further interest rate hikes.
New Zealand's manufacturing activity rose sharply in June as businesses reported a renewed sense of confidence amid stronger sales and fuller order books despite the conflict in the Middle East and cost-of-living pressures.
The global economy has been broadly resilient to the shock from the war in the Middle East, the heads of the International Energy Agency, International Monetary Fund, World Bank Group and World Trade Organization said in a joint statement on Wednesday.
The recent oil shock has led to falls in Australia's consumer and business confidence but so far there are few signs of a marked slowdown in activity, a senior central banker said on Wednesday.
U.S. consumers grew more concerned about near-term inflation pressures in June even as their worries about gasoline prices eased and were more upbeat about current and future personal finances, a New York Federal Reserve report showed on Tuesday.
Canadian economic activity expanded at a slower pace in June as measures of employment and prices fell, Ivey Purchasing Managers Index (PMI) data showed on Tuesday.
The U.S. trade deficit widened sharply in May as imports of capital goods surged to a record high, suggesting that trade remained a drag on gross domestic product in the second quarter.
Canada's trade surplus widened to a four-year high in May, with exports rising for the fourth consecutive month, as goods shipped to the United States topped their highest level since February last year, data showed on Tuesday.
Britain will need extra tax rises or spending cuts equivalent to the entire education budget early next decade to prevent government debt spiralling higher from current levels, the Office for Budget Responsibility said on Tuesday.
France is at risk of missing its deficit-reduction target this year as the growth outlook deteriorates and may need to take additional savings measures, Finance Minister Roland Lescure said on Tuesday.
U.S. services sector activity dipped in June as some of the boost from businesses rushing to place orders amid the Middle East war ebbed, but employment rebounded after contracting for three straight months, pointing to continued labor market stability.
German industrial production rose more than expected in May driven by a strong increase in automotive production. Industrial output increased by 0.9% compared to the previous month, the federal statistics office said on Tuesday.
Bao Zhang began driving for a Chinese ride-hailing app this year after losing his job as a software tester and says the weak job market gives him little hope of returning to the tech sector.
A quarter of a century since he spotted the growing clout of emerging-market countries, the economist who coined the BRIC acronym said those countries could eventually build alternatives to the dollar, an idea which had seemed a "fantasy" until only very recently.
U.S. Federal Reserve Governor Christopher Waller said on Monday that high inflation is the chief risk facing the Fed given a labor market that remains stable.
Canadian businesses scaled down expectations of high inflation after a ceasefire in the Middle East, and trade worries abated, a quarterly Bank of Canada survey of leaders showed on Monday.
Canada's services economy contracted in June as geopolitical uncertainty and elevated prices dampened demand, S&P Global's Canada services PMI data showed on Monday.
Donald Trump’s war against Iran may be over, but the repercussions for global monetary policy are here to stay. With a shaky ceasefire largely holding following the US president’s onslaught in the Middle East, the path for central bank interest rates around the world has now shifted higher for years to come, according to Bloomberg Economics.
German industrial orders rose more than expected in May, posting a considerable increase even when large-scale orders of aircraft, ships, trains and military vehicles are excluded.
The number of Australian job advertisements dipped slightly in June, private-sector data showed on Monday, suggesting labour demand was only gradually easing amid higher borrowing costs.
The United States may continue to lead the global economy, but its growing debt burden has emerged as the biggest risk to its economic pillar.
Russia's services sector contracted further in June as weaker client demand drove steeper falls in output and new orders, a business survey showed on Friday. The S&P Global Russia Services PMI Business Activity Index fell to 48.2 in June from 48.7 in May, a survey by S&P Global showed. The 50-mark separates growth from contraction.
The US unemployment rate fell to 4.2% in June from 4.3% in May, even as employers added fewer jobs than expected. According to the US Bureau of Labor Statistics (BLS), nonfarm payrolls increased by 57,000 jobs in June, well below the 110,000 jobs economists had expected in a Reuters poll.
Activity in Britain's dominant services sector contracted for a second month running in June and by the most since early 2023 as the fallout from the Iran war continued to weigh on companies, a closely watched survey showed on Friday.
The euro zone services industry contracted at a slower pace in June as cost pressures fell at the sharpest rate on record outside of pandemic-era lockdowns, helping to stabilise the broader economy after two months of decline, a survey showed.
Germany's services sector contracted for a third straight month in June as weaker demand, dragged down by higher prices and lower market confidence, continued to weigh on activity, a survey showed on Friday.
France's services sector contracted in June by more than initially forecast, as sluggish demand and inflationary pressures weighed on businesses, said a survey by S&P Global.
Business in Italy's service sector grew marginally in June after three months of contraction, a survey showed on Friday, as cost pressures eased amid signs of de-escalation in the conflict in the Middle East.
Kenya's private sector activity picked up in June, breaking a run of three previous monthly contractions, a survey showed on Friday. The Stanbic Bank Kenya Purchasing Managers' Index rose to 50.0 in June from 46.6 a month earlier. Readings above 50.0 indicate growth in business activity, while those below that signal contraction.
Spain's services sector expanded at its strongest pace this year in June as activity and new business rebounded on stronger domestic demand, a business survey showed on Friday. The Spain Services PMI Business Activity Index rose to 54.2 in June from 50.1 in May, according to the survey by S&P Global.
China's services activity expanded at a slightly slower pace in June as growth in new business eased, though overseas demand rose at the fastest rate in 20 months, a private-sector survey showed on Friday.
Japan's services sector returned to expansion in June after stalling the previous month, though business confidence remained subdued amid concerns over Middle East tensions and intensifying cost pressures, a private survey showed on Friday.
Consumer confidence in New Zealand rose in June as two-year inflation expectations eased, returning nearer to January levels before the oil price spike, ANZ-Roy Morgan data showed on Friday.
New orders for U.S. factory goods fell in May amid a decline in bookings for commercial aircraft, but demand elsewhere remained strong, partly driven by investment in artificial intelligence.
Canada's manufacturing sector expanded further in June as production and employment rose, but not all was positive for the sector as intensifying supply shortages helped lift cost inflation to a near four-year high.
atastrophe and risk modeling firm Verisk said on Thursday it expects economic losses from the Venezuelan earthquake to exceed $10 billion. Here are some details: • Two powerful earthquakes struck north-central Venezuela near densely populated areas on June 24. With the death toll in the thousands, the government has been prompted to declare a national state of emergency.
taly's unemployment rate fell slightly to 5.0% in May but a net 22,000 jobs were lost during the month, with the fall in the jobless rate due to people no longer looking for work, national statistics bureau ISTAT reported on Thursday.
The United States Supreme Court ruling on birthright citizenship isn’t just a win for the immigrant community but also for the US economy. According to the Center for Migration Studies estimates that beneficiaries of birthright citizenship will contribute $7.7 trillion to the US economy over their lifetimes, with $438 billion of that arriving between 2025 and 2029 alone.
British business confidence fell to its lowest since 2022 as the Iran war, which pushed up costs, saps expectations for future sales, a survey of accountants showed on Thursday.
U.S. job growth likely slowed to a still-solid clip in June, with the unemployment rate expected to hold steady at 4.3% for a fourth straight month, consistent with a stable labor market.
Australia's balance on goods trade in May unexpectedly swung to the largest deficit in over a decade, data showed on Thursday, as exports of gold and iron ore fell sharply.
South Korea's consumer inflation accelerated to a two-and-a-half-year high in June, cementing expectations for an interest rate hike by the central bank as early as its upcoming policy meeting on July 16.
U.S. manufacturing activity slowed in June after surging in the prior month, likely as some of the lift from businesses front-loading orders to avoid shortages and higher prices caused by the Middle East conflict faded.
Mexico's peso will likely hold steady near the middle of its well-established trading range at least into the first half of 2027, a Reuters poll found, supported by foreign exchange market expectations for an economic recovery.
Sri Lanka has regained upper-middle income status just three years after a severe economic crisis brought the country to the brink of collapse in 2022. The World Bank, in its latest income classification update released yesterday reclassified Sri Lanka from the lower-middle-income category after the economy expanded by 5 percent in 2025, supported by a broad-based recovery across industries and growth in tourism and financial services.
The global AI boom powered Asia's manufacturing sector in June, with brisk demand for technology-related goods offsetting the drag from the Iran war, private surveys showed on Wednesday, offering some relief for the region's export-reliant economies. Price pressures, however, remained elevated as supply shortages and shipping delays lengthened lead times, suggesting the energy shock tied to the Middle East conflict could intensify across the region in coming months.
German factory activity expanded modestly in June as output growth ticked up and new orders rebounded, while the outlook for price trends depends on developments in the Middle East, a survey showed on Wednesday. The S&P Global final Purchasing Managers' Index (PMI) for German manufacturing rose to 50.3 in June from 50.1 the month before, coming in slightly above an earlier preliminary reading of 50.0.
France's manufacturing activity grew slightly faster in June than initially forecast, despite ongoing supply-chain pressures caused by transport disruptions due to the Iran war, a business survey showed on Wednesday. The S&P Global France Manufacturing Purchasing Managers' Index (PMI) rose to 51.2 points in June from 49.7 in May.
Cost pressures and supply chain disruption in Italy's manufacturing sector eased in June, a survey showed on Wednesday, reflecting signs of de-escalation in the conflict in the Middle East. The measure of input cost inflation in the Italian S&P Global Manufacturing Purchasing Managers' Index (PMI) fell to 74.3 from 76.5 in May, posting the first decline this year while remaining at a historically high level.
Turkey's manufacturing sector contracted in June as the war in the Middle East disrupted demand and supply, a business survey showed on Wednesday. The Istanbul Chamber of Industry's Turkey Manufacturing Purchasing Managers' Index, compiled by S&P Global, fell to 47.1 in June from 49.8 in May. The 50-mark separates growth from contraction.
Indonesia's annual inflation rate accelerated to 3.34% in June from 3.08% the previous month, data showed on Wednesday, higher than the median forecast in a Reuters poll and moving closer to the top end of the central bank's target range. The poll had expected an inflation rate of 3.20%. Bank Indonesia targets inflation within a range of 1.5% to 3.5%.
Japanese business mood climbed to an eight-year high and corporate inflation expectations rose to record levels, a quarterly survey showed, underlining the economy's resilience to the Middle East war and bolstering the case for more rate hikes. The data will be among factors affecting the Bank of Japan's quarterly growth and inflation forecasts due next month, which will offer clues on how soon it could raise interest rates again after a hike to a 31-year high of 1% in June.
Brazil's Treasury said on Tuesday that fiscal targets will become unfeasible from 2028 without new measures, as rising mandatory spending outpaces efforts to contain costs even with maximum freezes on discretionary outlays. The warning comes as economists call for stronger fiscal discipline amid rising public debt under President Luiz Inacio Lula da Silva, with investors demanding higher risk premiums to finance expanding government spending.
The World Bank will phase out its lending to China by 2031 after years of declining loans, reflecting the country's rise to become the world's second-largest economy, three sources familiar with the plan said on Tuesday. The World Bank's board will review the plan during the week of July 20, although no formal vote is needed, one of the sources said. It was agreed by the World Bank and China as part of its five-year "country partnership framework."
New Zealand's economic recovery has been delayed by the oil price shock and heightened global uncertainty, while inflation is expected to rise temporarily to around 4% in mid-2026, the International Monetary Fund said on Wednesday. The IMF, in a concluding statement after its 2026 Article IV mission, said New Zealand's recovery had been gaining traction in early 2026 after a prolonged period of weak growth, but disruption to global energy markets following the onset of the Middle East war had pushed up fuel prices and weighed on disposable incomes.
More of the world's central banks plan to cut dollar allocations than increase them in the coming decade as political risks associated with the U.S. currency rise, an OMFIF survey of public investors released on Tuesday showed.
China's factory activity returned to expansion in June, an official survey showed on Tuesday, driven by strong high-tech manufacturing exports linked to the AI boom, even as shipments of other goods remained weak alongside subdued domestic demand.
Japan's factory output rose at a slower-than-expected pace in May from the previous month, government data showed on Tuesday. Here are a few details. • Industrial output grew 0.5% in May from the previous month, versus the median market forecast for a 1.1% rise, according to the Ministry of Economy, Trade and Industry.
British businesses' confidence about the economic outlook fell this month although their assessment of their own prospects was less downbeat, a survey by Lloyds showed on Tuesday.
Argentina's economic activity grew less than expected in April, official data showed on Monday, as gains in mining and agriculture were partly offset by weakness in manufacturing and commerce.
The euro zone economy appears to have built greater resilience to economic shocks, allowing the European Central Bank to raise interest rates more easily without fearing it would set off financial stress, ECB President Christine Lagarde said.
Brazil's government expects total spending as a share of gross domestic product to decelerate and end the year at around 19%, Treasury Secretary Daniel Leal said on Monday.
The global economy is facing growing risks because of record-high government debt, uncertainty over the artificial intelligence (AI) investment boom, and weaknesses in the financial system, the Bank for International Settlements (BIS) has warned in its Annual Economic Report 2026.
South Korean exports likely posted their strongest annual growth in nearly five decades in June, as semiconductor shipments broke fresh records in the wake of a boom in global AI investment, a Reuters poll showed on Monday.
China's factory activity likely returned to growth in June, albeit by the slimmest of margins, as the world's second-largest economy struggles for momentum despite strong demand for high-tech exports to feed the global AI boom.
Japan's government will aim to entrench annual real economic growth of more than 1%, according to the draft of its long-term economic blueprint that marks an ambitious target that would more than double the current pace.
British companies expectations for growth in the coming quarter fell this month to their lowest level this year, according to a survey on Monday that added to a run of downbeat business sentiment readings.
Bolivia will adopt a flexible exchange-rate system, the government said on Friday, effectively devaluing the currency by ending a 15-year dollar peg in a major policy shift aimed at restoring economic stability.
U.S. consumer sentiment rebounded from record lows in June, though households remained worried about the high cost of living, a survey showed on Friday. The University of Michigan's Surveys of Consumers said its Consumer Sentiment Index increased to a final reading of 49.5 this month from 44.8 in May. It was a slight improvement from 48.9 earlier this month.
The U.S. trade deficit in goods swelled to a 14-month high in May as businesses boosted imports, likely to avoid shortages and higher prices related to the war in the Middle East, prompting economists to cut their growth estimates for the second quarter.
Brazil's current account deficit reached $3.185 billion in May, central bank data showed on Friday, narrower than the $4.159 billion shortfall expected in a Reuters poll. • The trade surplus widened by about $500 million from a year earlier, while the services deficit increased by a similar amount.
Argentina's monthly economic activity indicator is forecast to show 2% year-over-year growth in April, down from 5.5% in March, according to the median of a Reuters survey of 10 analysts released Friday. • Despite the positive annual reading, analysts expect monthly activity declined from March, signaling a slow, oscillating recovery.
Euro zone consumers cut their near term inflation expectations in May and kept them steady for longer horizons, a European Central Bank survey showed on Friday, suggesting that the bank is not under pressure to quickly raise interest rates again.
Global trade flows and relationships are shifting after U.S. President Donald Trump imposed unilateral tariffs on most countries, but the U.S. dollar continues to anchor international trade, banking and central bank reserves, the International Monetary Fund's chief economist said on Friday.
The US economy expanded at a solid and unexpected 2.1% annual pace from January through March, the Commerce Department reported Thursday in its final estimate of first-quarter growth. The growth in gross domestic product - the nation's output of goods and services - marked a rebound from a sluggish 0.5% in the last three months of 2025 when a 43-day federal government shutdown weighed on the economy. Thursday's numbers marked an upgrade from of Commerce's previous first-quarter estimate of 1.6% growth.
Core consumer prices in Tokyo rose 1.6% in June from a year earlier, government data showed on Friday. The core consumer price index for Japan’s capital, which includes oil products but excludes fresh food prices, compared with economists' median estimate for a 1.6% annual rise.
The Bank of Canada's consultation on its monetary policy framework review found broad support for its 2% inflation target, but participants complained about the disconnect between official inflation data and actual price of goods, the bank said in a report on Thursday. The cost of living crisis is a challenge for Prime Minister Mark Carney who pledged to tackle affordability after his party won a parliamentary majority in April.
Chicago Federal Reserve President Austan Goolsbee on Thursday said there was a "glimmer of hope" on services inflation in the latest U.S. inflation report, but underlying inflation pressures are still too high and trending the wrong way. "If we look at core inflation, it's still well too high and it's trending the wrong way, and we've got to see improvement on that," he said in an interview on CNBC. "Right now, as between the two sides of the Fed's mandate - the inflation side and the job market side - clearly the problem's on the inflation side."
The U.S. economy has seen solid growth momentum and inflation was expected to reach the Federal Reserve's 2% target by the end of 2027, the International Monetary Fund said on Thursday. IMF spokeswoman Julie Kozack told a regular news briefing that the Fed last week appropriately decided to hold its key policy interest rate, and welcomed the strong commitment of the new chair, Kevin Warsh, to delivering price stability.
The U.S. economy grew faster than previously estimated in the first quarter, but consumer spending almost stalled. Gross domestic product increased at an upwardly revised 2.1% annualized rate last quarter, the Commerce Department's Bureau of Economic Analysis said in its third estimate of first-quarter GDP on Thursday. Growth was previously reported to have advanced at a 1.6% pace. Economists polled by Reuters had expected that GDP growth would be unrevised at a 1.6% rate.
New orders for key U.S.-manufactured capital goods rebounded sharply in May as demand increased broadly, suggesting business spending on equipment would again underpin economic growth in the second quarter. Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending, increased 1.6% last month after an upwardly revised 0.7% decline in April, the
The number of Americans filing claims for unemployment benefits fell more than expected last week, consistent with labor market resilience. Initial claims for state unemployment benefits dropped 12,000 to a seasonally adjusted 215,000 for the week ended June 20, the Labor Department said on Thursday. Economists polled by Reuters had forecast 225,000 claims for the latest week.
Brazil's consumer prices rose slightly less than expected in the month to mid-June, data from statistics agency IBGE showed on Thursday, with food costs driving the increase but losing momentum from the previous month. Inflation rose 0.41% in the period, below the 0.44% increase forecast in a Reuters poll. In the 12 months through mid-June, inflation accelerated to 4.80% from 4.64% in the previous period, moving further above the central bank's 3% target, which has a tolerance band of plus or minus 1.5 percentage points.
Swiss economic growth will remain subdued in the near term, slowing to 1.1% in 2026, as sluggish growth among trading partners and heightened geopolitical and tariff uncertainty dampen external demand, the IMF said on Thursday. Growth is seen at 1.1% in 2026 compared to 1.4% in 2025, the International Monetary Fund said in a statement. Adjusted for sporting events, growth is seen at 0.8% in 2026. In 2027, growth is seen accelerating to 1.2%, or 1.5% when adjusted for sporting events.
Spanish industrial prices rose in May at their fastest pace since December 2022, fuelled by a considerable increase in energy prices, the National Statistics Institute (INE) said on Thursday. The 10.5% year-on-year rise followed a revised 8.5% increase in the 12 months through April. It was driven by a 28.2% increase in energy costs, mainly due to higher prices of electric power generation, transmission and distribution.
Spain's gross domestic product grew 0.6% in the first quarter of 2026, below the 0.8% growth in the previous quarter, the country's National Statistics Institute (INE) said on Thursday, confirming both the expectations of analysts polled by Reuters and the preliminary data. On an annual basis, Spain's first-quarter economic output expanded by 2.7%, also confirming INE's preliminary reading and the analysts expectations.
German consumer sentiment stabilised heading into July, as households' income expectations improved, a survey found on Thursday. The consumer sentiment index, published by the Nuremberg Institute for Market Decisions and the GfK market research institute, showed sentiment rising to -29.2 points for July from a revised -29.7 points in June.
Job vacancies in Australia fell in the May quarter for the first decline since the middle of 2025, data showed on Thursday, with the largest drops in the finance, accommodation and food sectors.
Just two days after SpaceX made its historic market debut, a Chinese space startup held an investor roadshow for its maiden fundraising round by touting a mission to help China catch up with the U.S. in the race to the heavens.
The U.S. current account deficit widened more than expected in the first quarter amid a shortfall on the primary income balance, government data showed on Wednesday.
Mexico's annual inflation rate hit 3.55% in the first half of June, official data showed on Wednesday, landing below expectations and defusing pressures for a rate hike from the central bank.
Singapore’s inflation rate remained unchanged at 1.8 per cent in May, coming in below economists’ expectations of 2 per cent. The latest reading matched April’s figure and showed a mixed trend in prices across different sectors of the economy. Core inflation, which excludes accommodation and private transport costs, also stayed steady at 1.4 per cent in May. This was lower than the 1.6 per cent forecast by economists surveyed by Reuters.
When Nvidia became the world's first $5 trillion company in October 2025, it was celebrated as a stock market milestone. It may actually be something much bigger. For much of the last century, countries that controlled oil shaped global trade, geopolitics and economic growth. Today, a growing number of nations are finding that influence through semiconductors
Malaysia's central bank said on Wednesday it would step up efforts to support the ringgit, including measures to attract foreign funds and encourage state-linked firms and companies to repatriate overseas earnings. Bank Negara Malaysia said its Financial Markets Committee, which met to review the ringgit's more than 4% decline so far in June, noted that the country's economic fundamentals remain strong and that the onshore foreign exchange market continues to function smoothly.
The U.S. dollar extended gains to reach a fresh 13-month high against a basket of major currencies on Wednesday, as investors sought shelter from a tech stock selloff and prepared for rate hikes from the Federal Reserve. Stock market volatility continued after a broad selloff of technology and semiconductor sectors dragged global shares lower, sparking safe-haven demand for the dollar and bonds.
Japan's services producer price index in May rose 3.3% from a year earlier, central bank data showed on Wednesday, a sign of broadening inflationary pressure that will keep alive market expectations of further interest rate hikes. The annual rise in the index, which tracks the price companies charge each other for services, followed a revised 3.3% gain in April. The increase was driven by a 61.8% surge in the cost of ocean freight transportation and a 17.3% gain in international air passenger transportation, the data showed, due likely to surging fuel costs from the Middle East conflict.
Oil surging to more than $120 a barrel last spring cut about three-tenths of a percentage point from U.S. economic output, but the blow was a small fraction of what would have taken place from a similar oil shock in the 1980s when the country was more reliant on imports, a new Dallas Fed study estimated. The roughly 15% cut to global oil supplies after the U.S.-backed war with Iran led to the closure of the Strait of Hormuz shipping lanes upended world commodity markets as prices rose, supplies became scarce in parts of the world and overall demand dropped.
U.S. manufacturing activity rose again in June as companies preemptively placed new orders in anticipation of shortages and higher prices, but factory employment hit a six-year low, blamed on rising operating costs related to the Middle East conflict. S&P Global said its flash manufacturing PMI increased to 55.7 this month, the highest reading since May 2022, from 55.1 in May. A reading above 50 indicates growth in manufacturing, which accounts for 9.4% of the economy. Economists polled by Reuters had forecast the manufacturing PMI slipping to 54.8.
Mexico's economy posted its largest monthly expansion in more than five years in April, ahead of expectations, according to official data published on Tuesday. Mexico's economic activity grew 1.2% in April from the prior month, the national statistics agency said, compared with a revised increase of 0.6% in March and beating a forecast of a 0.9% increase in a Reuters poll of analysts.
The global economy remains fragile despite a temporary US-Iran truce with the risks of renewed inflation pressure, supply disruptions, slower investments and financial instability if tension escalates, the Reserve Bank of India's state of the economy report said.
Germany's private sector activity contracted at its fastest pace in 18 months in June as the services downturn deepened, a survey showed on Tuesday. The Composite Flash Purchasing Managers' Index for Germany, compiled by S&P Global, fell to 48.0 in June from 48.8 in May, below the expectations of analysts polled by Reuters that it would be at 49.6. The 50-mark separates growth from contraction.
France's private sector contraction eased in June as declines in manufacturing and services output both slowed, a business survey showed on Tuesday. The S&P Global Flash France Composite Output Index rose to 47.6 from 44.9 in May, a preliminary survey by S&P Global showed. The 50-mark separates growth from contraction.
Euro zone consumer confidence rose by 1.3 points in June from the May number, figures released on Monday showed. The European Commission said a flash estimate showed euro zone consumer morale increased to -17.7 this month from -19.0 in May.
Canada's annual inflation rate in May accelerated more than expected to 3.2%, a 29-month high, data showed on Monday, as the impact of higher crude oil prices due to the Iran conflict continued to filter through gasoline costs.
Simon Boyd's firm makes prefabricated steel structures on the south coast of England and ships them to customers as far away as Ghana and Barbados. Mike Hawes represents Britain's carmakers as the head of the Society of Motor Manufacturers and Traders.
China left benchmark lending rates unchanged for the 13th consecutive month in June on Monday, in line with market expectations. WHY IT'S IMPORTANT The steady loan prime rates (LPRs) signal authorities are in no rush to ease policy, even as broader economic divergence persists and policymakers show little concern about slowing credit growth.
China's domestic economy continues to face significant headwinds despite robust export growth, with consumer spending, property activity and credit demand remaining weak, according to a recent market strategy report by Jefferies. The report said there is "a continuing lack of any evidence of a pickup in domestic demand", underscoring persistent challenges in the world's second-largest economy even as its manufacturing and export sectors remain resilient.
Japan plans to set a target of about $2.3 trillion in combined public and private investment by 2040 across 17 strategic sectors as part of Prime Minister Sanae Takaichi's new growth strategy, the Nikkei reported on Friday.
The Russian central bank cut its benchmark interest rate by 25 basis points to 14.25% on Friday, a smaller move than the 50 bps that analysts had expected, citing risks stemming from soft budget policy and a decline in fuel production.
The euro zone economy is in the midst of a mid-sized inflation shock, with inflation holding above 3% for the rest of the year, a situation that requires a "measured" policy response, European Central Bank Chief Economist Philip Lane said on Friday.
Europe's banking sector could boost lending by more than €2 trillion ($2.2 trillion) if regulators were to simplify rules while maintaining financial resilience, the head of Spanish banking association AEB, Alejandra Kindelan, said on Friday.
A U.S. Iran deal is in place for now but the next few weeks will test whether a more permanent agreement can be reached. Key U.S. and Australian economic data are due, Colombians head to the polls, and London hosts a major climate gathering.
British government borrowing jumped much more sharply than expected in May as higher inflation pushed up the cost of servicing index-linked debt, in unwelcome news for the public finances.
A U.S. Iran deal is in place for now but the next few weeks will test whether a more permanent agreement can be reached. Key U.S. and Australian economic data are due, Colombians head to the polls, and London hosts a major climate gathering.
British government borrowing jumped much more sharply than expected in May as higher inflation pushed up the cost of servicing inflation-linked debt, official figures showed on Friday in unwelcome news for the public finances.
British consumers did more shopping in May and April's sharp drop was revised up as hot weather boosted sales of summer items like fans and paddling pools, data showed on Friday, suggesting households were shrugging off inflation concerns.
The dollar strengthened in Asian trade on Friday, pinning the yen near a four-decade low as a peace deal between the U.S. and Iran hung in the balance and traders speculated further intervention may be needed to arrest a slide in the Japanese currency. The Japanese currency reversed earlier strength to trade flat against the U.S. dollar at 161.455 yen, grinding closer to its weakest level in two years, though public holidays in China, Hong Kong and Taiwan and an impending one in the U.S. kept liquidity thin.
Japan's core consumer prices rose 1.4% in May from a year earlier, government data showed on Friday. The core consumer price index, which includes oil products but excludes fresh food prices, compared with economists' median estimate for a 1.4% annual gain.
British consumer confidence held steady in June but younger people turned more pessimistic about the economy and their personal financial situation against a backdrop of political uncertainty, a long-running survey showed on Friday.
Foreign holdings of U.S. Treasuries rose in April, data from the Treasury Department showed on Thursday, led by gains by the two largest holders of government dent -- Japan and the UK. Holdings of U.S. Treasuries edged higher to $9.352 trillion in April, up from $9.348 trillion in the previous month. But compared with a year earlier, Treasuries owned by foreigners were up 4%.
Argentina posted a trade surplus of $3.50 billion in May, after registering $9.54 billion in exports and $6.03 billion in imports in the month, the government's statistics office said on Thursday. The data landed well above the $2.2 billion surplus forecast by analysts polled by Reuters.
Spain's economy likely expanded by 0.5%-0.6% in the second quarter from the preceding three months, when it grew at a similar pace of 0.6% to outperform other large euro zone economies, the Bank of Spain said on Thursday.
Taiwan's central bank on Thursday raised its growth outlook for the year thanks to the AI boom, while keeping its policy interest rate steady as expected, though the decision was not unanimous due to inflation concerns. The central bank also said it needed to be a bit more hawkish.
Germany's economy will grow less than previously expected this year and next as the Iran war and a resulting energy price shock weigh on consumption and investment, the IMK economic institute said on Thursday. The Macroeconomic Policy Institute (IMK) forecast gross domestic product would expand by 0.6% in 2026 and 0.9% in 2027, cutting its March projections by 0.3 and 0.7 percentage points respectively.
The Federal Reserve left interest rates unchanged at 3.50%-3.75% on Wednesday in Kevin Warsh‘s first meeting as chair. However, the Fed’s latest forecasts show that policymakers are becoming more concerned about inflation and are increasingly open to raising rates again if price pressures remain high.
Chaiyaporn Arunrasamee hunched over his fishing nets, overlooking the waters of the Andaman Sea, where Thailand's government is proposing an ambitious "Land Bridge" that will ferry goods between ports on opposite sides of the peninsula.
Germany's economy will grow less than previously expected this year and next as the Iran war and a resulting energy price shock weigh on consumption and investment, the IMK economic institute said on Thursday. The Macroeconomic Policy Institute (IMK) forecast gross domestic product would expand by 0.6% in 2026 and 0.9% in 2027, cutting its March projections by 0.3 and 0.7 percentage points respectively.
The number of people employed in German industry in 2025 fell to a 10-year low of just 6.6 million workers, a study by the German Economic Institute (IW) showed on Thursday. • The decline was not driven by rising numbers of dismissals by employers but by hesitation to refill vacancies and hire new staff • "The decline in new hires is a warning signal for future employment trends," said Luisa Kunze, labour market expert at the Bertelsmann Stiftung, which commissioned the IW study
Brazil's central bank cut rates at a third straight meeting on Wednesday and left its next steps open, acknowledging a tougher inflation outlook and risks from election-year fiscal stimulus. The bank's rate-setting committee, called Copom, unanimously voted to lower its benchmark Selic rate by 25 basis points to 14.25%, a level last seen in May 2025, in line with forecasts from 41 of 45 economists polled by Reuters.
China's booming exports are emerging as a major concern for Europe, with leaders of the Group of Seven (G7) economies discussing ways to address growing trade imbalances amid fears of a new "China Shock" hitting European industry, according to news agency AP.
Nippon Steel, the world's No. 3 steelmaker, expects the American market to remain buoyant, supported by import tariffs and resilient demand, which could lift earnings at U.S. Steel beyond current forecasts, Vice Chairman Takahiro Mori said. "We are confident that U.S. Steel will be able to post profits in excess of 100 billion yen ($624 million) this year," Mori said, adding that the strong market outlook through 2027 suggested additional upside. He said U.S. Steel would generate an annual profit of 300 billion yen to 400 billion yen in the long run. Mori described U.S. conditions as highly favourable, with hot-rolled steel sheet prices above $1,200 per metric ton, more than double the level in Asia. To capitalise on the strong pricing environment, U.S. Steel resumed an idled Illinois blast furnace in March and is now running it at full capacity.
Japan is moving toward temporarily cutting its consumption tax on food to 1% in what would be the first effective reduction of its kind, further straining its already worsening finances.
This time 10 years ago, few would have predicted that Northern Ireland would be topping the United Kingdom's economic growth charts after the 2016 vote to leave the European Union.
British inflation unexpectedly held at 2.8% for May, unchanged from the 13-month low reached in April, official figures showed on Wednesday, a day before the Bank of England will announce its next interest rate decision.
Japan's exports grew for a ninth straight month in May, data showed on Wednesday, as a weaker yen, higher commodity prices and solid semiconductor demand offset the drag from major supply disruptions linked to the U.S.-Israeli war with Iran. The global artificial intelligence boom has cushioned parts of the world economy against war-driven risks, enabling import-dependent nations like Japan to absorb the immediate shock to growth and trade.
apanese manufacturers' sentiment improved for the second consecutive month in June, as persistent semiconductor demand supported chemicals and machinery makers, the latest Reuters Tankan survey showed. The monthly poll, a leading indicator of the Bank of Japan's quarterly Tankan business survey, revealed that manufacturers' sentiment rose to plus-13 in June from plus-8 in May.
Argentina likely posted a trade surplus of $2 billion in May, a Reuters poll showed, as crude shipments were buoyed by high global oil prices and weak domestic demand meant exports outweighed imports.
France's economy is growing more slowly than expected after a sluggish start to the year with the Middle East conflict weighing on activity, the central bank said on Tuesday, warning the outlook was hostage to geopolitical developments.
Sunday’s memorandum of understanding between the US and Iran will come as a huge relief to a world weary of the 107-day conflict that roiled oil markets, threatened to push inflation higher, and cast a shadow over global growth and trade. Fingers crossed, the formal agreement scheduled to be signed in Geneva this Friday will pave the way for constructive negotiations and, ultimately, a durable peace.
China's economy showed increasing unevenness in May, with retail sales falling for the first time in over three years and investment slumping, while industrial output picked up pace. Tuesday's data highlighted a two-speed growth pattern in the world's second-largest economy, with factories buoyed by surprisingly resilient exports but domestic demand worsening amid a multi-year property downturn.
Pakistan could improve economic projections for 2027 after the end of the Iran war, but it is still too early to revise the budget, Finance Minister Muhammad Aurangzeb told Reuters, hours after the U.S. and Iran signed a deal to end the fighting. Damaged energy infrastructure meant supply chains would take time to return to normal, after the conflict pushed inflation back into double digits, Aurangzeb said.
Australia's central bank held its cash rate steady at 4.35% on Tuesday, saying the economy was slowing in the face of tighter financial conditions but warned it might hike the rate again if it was needed to control inflation. Wrapping up its June policy meeting, the Reserve Bank of Australia (RBA) said inflation was still too high and it would do whatever necessary to bring it down, "including increasing the cash rate target further if required."
Peru's economy expanded 3.73% in April from a year earlier, data from the government's INEI statistics agency showed on Monday, exceeding expectations as nearly all sectors posted growth. April's reading came above the 3.55% increase forecast by analysts polled by Reuters and compared with a 3.21% expansion in March.
The world economy is weathering the shock of the war in the Middle East with no signs yet of a global slowdown, but risks remain high, International Monetary Fund chief Kristalina Georgieva said on Monday. Georgieva, who will brief G7 leaders on the global economy at a summit in France this week, welcomed the agreement by the U.S. and Iran on Sunday to end their war and reopen the Strait of Hormuz, but warned in a new blog that an intensification of the conflict and supply disruptions posed a "clear risk to global growth."
U.S. factory production was unexpectedly unchanged in May after gains in the prior months, which some economists said were related to businesses building up inventory in anticipation of shortages and higher prices due to the war in the Middle East. Despite the flat reading in output reported by the Federal Reserve on Monday, an artificial intelligence spending boom by businesses is offering a lifeline to manufacturing, helping to offset some of the drag from import tariffs and the recent oil price shock. Business tax incentives for equipment investment are also supporting the sector.
The impact of the Iran war continues to ripple across the world economy, pushing up prices and denting the outlook for growth. The European Central Bank raised interest rates for the first time in nearly three years, and inflation in the US accelerated to the fastest pace since 2023.
War in the Middle East pushed the yen to the brink of multi-decade lows and prompted the government to prop it up -- a peace deal, however, won't pull it back from the precipice. Stocks and bonds soared on Monday on news of the planned Iran-U.S. halt to a war that has inflamed global inflation expectations, particularly in energy importers like Japan. But the yen barely budged, holding above the 160 per dollar level that invited official intervention just last month.
South Korea's artificial intelligence-led semiconductor boom has yet to generate a meaningful spillover into the broader economy, even as concerns over the won and financial stability are increasing the likelihood of a Bank of Korea (BOK) rate hike next month, Nomura's senior economist said.
A growing number of Americans are falling behind on their credit card payments, pushing delinquency levels to their highest point since the years following the Great Recession and raising concerns about financial stress among a section of US consumers. Data from the Federal Reserve Bank of New York shows that about 13% of the nation’s total credit card balance was at least 90 days overdue during the first quarter of 2026, reported The USA Today. That is the highest level recorded since 2011, when the United States was still recovering from the financial crisis that began in 2008.
The Italian economy will grow by 0.6% this year and 0.4% in 2027, the country's central bank said on Friday, confirming its previous estimate for 2026 but trimming next year's outlook from a 0.5% projection made in early April. "Economic activity is set to be affected by weaker domestic demand, held back by the surge in energy prices and even higher geopolitical uncertainty," the Bank of Italy said, forecasting a jump in inflation this year compared with its previous estimate.
U.S. consumer sentiment bounced off record lows in early June as easing gasoline prices offered households some relief, though concerns about inflation stoked by the Middle East conflict lingered. Lower-income households led the broad improvement in sentiment reported by the University of Michigan's Surveys of Consumers on Friday. Gasoline prices have dropped from four-year highs over the past three weeks, according to data from motorist advocacy group AAA, as oil prices stayed below $100 a barrel despite a fragile ceasefire.
Brazil's consumer inflation accelerated more than expected in May, official data showed on Friday, breaching the top of the central bank's target range for the first time since October ahead of a key rate decision next week. Annual inflation in Latin America's largest economy rose to 4.72% in May, statistics agency IBGE said, up from 4.39% in April and above the 4.66% consensus forecast by economists in a Reuters poll.
Heavy government spending on defence and infrastructure will stop Germany from slipping into recession this year, as the war in Iran takes its toll on Europe's biggest economy and lifts inflation, the Bundesbank said on Friday. Germany’s economy has been broadly stagnant for the past three years, with a jump in spending expected to restart growth this year, only for a war-driven surge in energy prices to derail the recovery.
Germany's economic recovery is likely to proceed in small steps at best, depending on the conflict in the Middle East, and energy and commodity prices, the economy ministry said on Friday. The ministry added in its monthly report that economic momentum likely slowed noticeably in the second quarter, with industrial production expected to show only modest growth in the coming months and no upturn in labour demand anticipated even during the summer due to higher energy prices.
Consumer prices in France rose 2.8% year-on-year in May, the highest level since February 2024, statistics office INSEE said on Friday, confirming a preliminary reading published last month. The EU-harmonised inflation rate in the bloc's second biggest economy continued accelerating in May, after a 2.5% increase in April.
Finance Minister Nirmala Sitharaman on Thursday said India is expected to remain one of the world’s fastest-growing major economies, with GDP growth projected at around 7% over the medium term, while cautioning that the responsibility for correcting global economic imbalances should not fall disproportionately on developing nations. Addressing the Global Convergence for Growth Summit virtually, chaired by French President Emmanuel Macron, Sitharaman joined leaders from G7 nations and major emerging economies to discuss measures to support balanced global growth through a more effective international economic framework.
Inside a new Bangladeshi glass factory with a production floor nearly twice the size of a soccer field, machinery sits wrapped in tarpaulins. At a neighboring steel mill, construction has slowed and production has yet to begin. The facilities, at a sprawling complex near Dhaka, were supposed to symbolize Bangladesh’s economic boom and shift to heavy industry, all built on plentiful liquefied natural gas. Instead, they’ve become a stark illustration of how a shortage of energy is threatening the country’s growth, just as a new democratically elected government led by Prime Minister Tarique Rahman tries to turn the country’s fortunes around.
Consumer prices in France rose 2.8% year-on-year in May, the highest level since February 2024, statistics office INSEE said on Friday, confirming a preliminary reading published last month. The EU-harmonised inflation rate in the bloc's second biggest economy continued accelerating in May, after a 2.5% increase in April.
Britain's economy contracted by 0.1% in April, its first monthly drop since August as the Iran war's cancellation of Formula 1 Grand Prix races and other Gulf sporting events delivered a blow to the British entertainment industry. Friday's data from the Office for National Statistics (ONS) showed the first clear signs of an impact from the U.S.-Israeli war on Iran in terms of British economic growth.
German inflation eased slightly to 2.7% in May, the federal statistics office said on Friday, confirming preliminary data. Inflation, or the gain in consumer prices harmonised to compare with other European Union countries, stood at 2.9% year-on-year in April.
Japan's core consumer inflation likely held steady in May at roughly the previous month's pace due to end of government fuel subsidies, leaving inflation below the Bank of Japan's 2% target for a fourth month, a Reuters poll showed on Friday. Here are a few details: • The nationwide core consumer price index (CPI), which includes energy items but excludes fresh food prices, is expected to have risen 1.4% in May from a year earlier, according to a poll of 16 economists, unchanged from April when it marked the slowest increase since March 2022.
New Zealand's manufacturing activity contracted slightly in May, slipping back into negative territory after seven months of expansion, as businesses remained concerned about weak demand and global economic pressures. The Bank of New Zealand-Business NZ's seasonally adjusted Performance of Manufacturing Index fell to 49.9 in May from 50.4 in April and 52.8 in March.
Argentina recorded slower inflation in May for the second month in a row, below analyst forecasts, even as the 12-month figure increased, data from national statistics agency INDEC showed on Thursday. May's inflation rate of 2.1% was down from 2.6% registered in April and came slightly under analyst expectations of 2.3%.
The International Monetary Fund cut its growth forecast for the euro zone on Thursday and raised its expectation for inflation because of the U.S.-Israeli war on Iran, adding that the economic situation could worsen if high energy prices persisted. In its regular report on the economy of the 21 countries that share the euro currency, the IMF said economic growth this year would be 0.9%, down from 1.1% forecast in April while inflation would be 2.8%, up from 2.6% forecast in April.
Bangladesh unveiled a 9.38 trillion taka ($77 billion) national budget on Thursday, targeting 6.5% economic growth and 7.5% inflation as the government seeks to revive an economy strained by high prices, weak investment and financial sector fragility. The budget, for the fiscal year beginning in July, marks a political and economic turning point after the ouster of former prime minister Sheikh Hasina in 2024.
U.S. producer prices increased more than expected in May, leading to the largest annual gain in 3-1/2 years as the Middle East conflict boosted the cost of energy products, providing more evidence that inflation pressures were building up. The report from the Labor Department on Thursday and continued labor market resilience amid relatively low layoffs reinforced economists' expectations that the Federal Reserve would keep interest rates unchanged into 2027 and for the Federal Open Market Committee to ditch its easing bias at next week's policy meeting.
The Bureau of Labor Statistics has released the US Consumer Price Index (CPI) data for May, offering insights into how inflationary pressures have moved across food, shelter, and other areas of the economy. The annual inflation rate in the US rose to 4.2% in May 2026, marking its highest level since April 2023, from 3.8% in April and in line with market expectations. This represents the third consecutive monthly acceleration in headline inflation, with energy costs jumping 23.5% vs 17.9% in April, due to the energy shock triggered by the conflict with Iran. Gasoline prices soared 40.5%, after a 28.4% gain.
The United States has become the world's largest oil exporter, upending a decades-old order long dominated by Saudi Arabia and Russia, a shift that tightens American companies' grip on energy markets as Washington's war with Iran reshapes global energy trade. America's ascendancy to the top spot marks a stunning reversal for a country that was dependent on Middle Eastern oil for decades and suffered from an oil embargo imposed by some OPEC members in 1973 to retaliate against U.S. support for Israel.
Japanese business sentiment soured in April-June for the first time in four quarters, a government survey showed on Thursday, a sign of growing economic pain from the Middle East conflict. An index measuring big companies' sentiment fell to -0.5% point in the second quarter following a reading of +4.4 points in January-March, the survey showed.
Mexico's financial system remains solid and can handle adverse situations, the central bank said on Wednesday, while highlighting geopolitical conflicts as issues to monitor. Risks in the system have increased marginally since the prior stability report published in December, it said, although the system has strong capital and liquidity levels and would be able to withstand shocks.
Russian President Vladimir Putin told top officials on Wednesday that there are grounds to expect a cut in the central bank's key interest rate when it meets next week, and praised the monetary policy of central bank chief Elvira Nabiullina, who was absent from the meeting due to illness. Nabiullina has cancelled two public appearances in the past week, including at the St Petersburg International Economic Forum, Russia’s biggest business conference, often dubbed the “Russian Davos.”
Italian industrial output unexpectedly rose in April from the previous month, data showed on Wednesday, posting a 0.5% increase that marked the third gain in a row for a manufacturing sector showing signs of emerging from a long-runnng slump. Industrial output rose 0.6% rise in March, amid surging energy costs following U.S. and Israeli strikes on Iran that began at the end of February.
Germany's economy is likely to slip into a technical recession this year as an energy price shock triggered by the war in Iran derails a fragile recovery, the DIW economic institute said on Wednesday, cutting its 2026 growth forecast in half. DIW Berlin now expects Europe's largest economy to grow by 0.5% this year and 0.8% in 2027, around half a percentage point lower than forecast in spring.
China's producer prices rose for a third straight month in May to the highest since July 2022, while consumer prices stayed elevated as global energy prices piled cost pressures on manufacturers and drove up costs of living for households. Cost pressures from the Iran war could squeeze corporate profits and further subdue domestic consumption, although global AI-related demand provided a boost for some sectors.
China's exports picked up pace in May, rising 19.4% from a year earlier, its customs agency said Tuesday, as technology-related shipments remained robust despite impacts from the Iran war. The stronger than expected performance was an improvement from April's 14.1% year-on-year (Y-o-Y) increase. Imports in May jumped 27.4%, also at a faster pace compared with April's 25.3% Y-o-Y expansion.
The US trade deficit shrank slightly in April, government data showed Tuesday, bolstered by energy exports on a supply crunch following war in the Middle East. The overall trade gap narrowed 1.2 percent to $55.9 billion, said the Commerce Department. Economists surveyed by Dow Jones Newswires and The Wall Street Journal had expected a $56.1 billion figure.
Norway's annual core inflation rate rose unexpectedly in May, Statistics Norway (SSB) data showed on Wednesday, supporting expectations interest rates could increase further this year. Core inflation, which strips out changing energy prices and taxes, stood at 3.4% year-on-year, up from 3.2% in April, and above the 3.2% expected by analysts in a Reuters poll. Norges Bank had expected core inflation of 3.3%. Norway's currency, the crown, strengthened to 10.96 against the euro by 0609 GMT, from 11.00 ahead of the data release.
U.S. consumer inflation likely increased at its fastest pace in three years in May as the Middle East conflict raised prices of energy products, which would provide more ammunition for the Federal Reserve to keep interest rates unchanged this year. The anticipated third straight month of strong year-on-year Consumer Price Index readings from the Labor Department on Wednesday is expected to highlight mounting pressure on households as evidence suggests more consumers are dipping into savings to finance their spending. Inflation is likely to outpace wage growth in May for a second straight month, a development that could weigh on overall economic growth.
Japan's wholesale inflation accelerated in May at the fastest pace in three years as price pressures from the Middle East war broadened, adding to the case for further interest rate hikes by the central bank. The Bank of Japan meets next week and is expected to deliver its first interest rate hike since December to cope with mounting inflationary pressures from a weak yen and the war-induced energy shock.
U.S. small-business sentiment fell in May and the share of owners planning to raise prices over the next three months increased to the highest level in nearly four years, suggesting inflation could remain elevated for a while. The National Federation of Independent Business said on Tuesday its Small Business Optimism Index slipped 0.6 to 95.3 last month, falling further below its 52-year average of 98.0. The survey's uncertainty index rose three points to 91. It is running well above its historical average of 68.
German industrial production rose less than expected in April and economists said the outlook for Europe's largest economy remains weak, despite an unexpected increase in exports. Industrial production rose by 0.4% in April compared with the previous month, the federal statistics office said on Tuesday. Analysts polled by Reuters had predicted a 0.5% rise. It was the first monthly increase since the start of the Iran war, but that was no cause for optimism, Carsten Brzeski, global head of macro at ING, said.
German exports rose unexpectedly by 0.9% in April compared with the previous month, data from the federal statistics office showed on Tuesday. The result compared with a forecast for a 0.5% decrease in a Reuters poll. The statistics office publishes more detailed economic data on its website.
The Bank of Japan will consider maintaining the current pace of bond purchases beyond next fiscal year, sources said, pausing a taper process that would mark a turning point in its quantitative tightening (QT) plan. But the decision could be a close call as the nine-member board is seen as split between those who want to focus on soothing investor nerves and others who see the need to steadily slow purchases to reduce the BOJ's large balance sheet, they said.
South Korea's economy grew in the first quarter at a stronger pace than previously estimated in April, revised central bank data showed on Tuesday. Gross domestic product grew 1.8% in the January-March quarter from the preceding three months, faster than the 1.7% increase estimated earlier, according to the Bank of Korea.
The Confederation of British Industry cut its forecast for the country's economic growth on Tuesday and predicted unemployment would rise to its highest in more than a decade as the Iran war pushes up energy prices and squeezes living standards. Consumer price inflation looks set to peak at 3.7% in the first quarter of next year, up from 2.8% in April and similar to the rise predicted by the Bank of England.
The International Monetary Fund's Executive Board approved reviews of Papua New Guinea's lending arrangements, unlocking about $163 million in combined disbursements, the fund said on Monday. • The Extended Fund Facility and Extended Credit Facility arrangements were approved in 2023, to address a protracted balance of payments problem that caused foreign exchange shortages.
Vietnam will lean towards expansionary fiscal policies to meet the government's economic growth target, with the room narrowing for monetary policy, the country's deputy central bank governor Pham Thanh Ha was cited by state media as saying on on Monday.
Japan's economy lost momentum in the January-March quarter from the previous three months on sluggish capital expenditure, revised gross domestic product data showed on Monday, pointing to challenges ahead due to the Middle East conflict.
The American labour market proved strong in May, with the economy adding 172,000 jobs and the unemployment rate holding steady at 4.3%, according to data released by the Bureau of Labor Statistics.
Global oil inventories are running dangerously low as a deal to re-open tanker traffic through the Strait of Hormuz has proven elusive, and industry executives and analysts warn there could be another oil price shock in the coming weeks, severe enough to upset broader financial markets.
Canadian economic activity expanded at a faster pace in May and inflation pressures heated up, Ivey Purchasing Managers Index (PMI) data showed on Friday. The seasonally adjusted index rose to 58.2 from 57.7 in April, marking the highest level since September.
Canada's economy added 87,800 jobs and the unemployment rate fell to 6.6% in May, data showed on Friday, defying widespread expectations of only modest employment growth and showing some resilience despite signs of softer economic growth.
The World Trade Organization said on Friday there were signs global merchandise trade growth may be starting to slow, though it had shown resilience in the first half of 2026 in the face of widespread disruption sparked by the Middle East conflict.
Italy's economy will grow by 0.7% this year, national statistics bureau ISTAT said on Friday, trimming a previous forecast of 0.8% made in December. In its twice-yearly economic outlook, ISTAT said gross domestic product (GDP) in the euro zone's third-largest economy would expand by 0.7% also in 2027.
Pakistan's foreign exchange reserves are nearing the government's $18 billion target for FY26, but a widening trade deficit, mounting external payment obligations and pressure on the rupee are raising concerns about the country's economic stability, PTI reported.
U.S. employment growth likely moderated in May after two straight months of strong gains, but the pace would probably remain consistent with stable labor market conditions. Economists expected the Labor Department's closely watched employment report on Friday to confirm that the Middle East conflict, which has stoked inflation through a surge in oil prices, was yet to have material impact on the jobs market.
The European Central Bank is expected to hike interest rates next week, becoming the first of the biggest central banks to do so since the Iran war unleashed an energy crisis that is stoking inflationary pressures in the euro zone. But with the economy of the 21-country bloc weaker than during Europe's previous energy crisis in 2022, policymakers are walking a tightrope as they try to contain rising prices without exacerbating the growth hit from the crisis.
Japan's real wages climbed 1.9% in April from a year earlier, government data showed on Friday, marking a fourth consecutive monthly gain, as higher special payments boosted overall earnings and improved household purchasing power. Here are a few details: • The Bank of Japan, which will next review its interest rates on June 15 and 16, considers steady rises in wages and prices as a prerequisite for another hike. The Japanese central bank is expected to raise interest rates this month unless a sharp escalation in the Middle East conflict roils markets, sources told Reuters.
San Francisco Federal Reserve President Mary Daly on Thursday said that while she believes AI over a five- to 10-year window could be a deflationary force, the effect is "not a pressing issue" for monetary policy which operates on a 12-month horizon. Daly, at a Bloomberg Tech event in San Francisco, also said she also does not think that AI is behind the current rise in inflation, which being driven by higher tariffs and, more recently, by higher energy and food prices since the start of Iran war.
Mexico's economy could grow more than the OECD's latest forecast, Finance Minister Edgar Amador Zamora said in an interview with newspaper Milenio published late on Wednesday, arguing that a planned surge in public investment and government measures to contain inflation would support activity. • The OECD now expects Mexico's economy to expand 0.8% in 2026 and 1.8% in 2027, though it warned that growth would be held back by trade tariffs, slower U.S. growth, global uncertainty and fiscal consolidation that would keep public investment contained.
Activity in the US services sector expanded in May, according to survey data released Wednesday, beating expectations and continuing to show strong performance despite respondents citing rising cost pressures.
Indonesia's parliament on Thursday passed sweeping legislation that places further emphasis on Bank Indonesia supporting economic growth, while empowering lawmakers to evaluate independent financial regulators and the central bank. Parliament passed the bill by acclamation, with support from all parties, according to the deputy speaker, Sufmi Dasco Ahmad, who led Thursday's plenary session.
Australia's balance on goods trade swung back into surplus in April after a surprise deficit the month before, data showed on Thursday, as a rebound in resource exports helped offset a surge in fuel imports. The Australian Bureau of Statistics reported the balance on goods recorded a surplus of A$1.8 billion ($1.28 billion) in April, bang in line with market forecasts. March had seen the first deficit since 2017 at A$1.0 billion.
Brazil's trade surplus reached $7.8 billion in May, official data showed on Wednesday, above market expectations, as higher prices drove export growth at a faster pace than imports.
After unleashing 'Epic Fury' on Iran, the United States has launched another front to step up its pressure on the country. The US, on Tuesday, imposed sanctions on Iran's largest cryptocurrency exchange, Nobitex, and several of its senior executives, accusing the platform of helping the Iranian government and sanctioned entities bypass Western restrictions.
Spain's service sector activity stabilised in May as activity and sales returned to growth after April's decline, a business survey showed on Wednesday. The S&P Global Purchasing Managers Index for the services sector rose to 50.1 in May from 47.9 in April, creeping back above the 50 mark separating growth from contraction.
The global economic outlook hinges on how long the war in the Middle East lasts, with recession in some countries and sharply higher inflation a real possibility if it drags on into next year, the Organisation for Economic Cooperation and Development warned on Wednesday. If the conflict proves short-lived, Gulf oil and gas production could gradually return to pre-crisis levels from the third quarter with shortages confined to Asia and cushioned by strategic reserves and shipments from other producers.
Russia's services sector contracted in May at its quickest pace since September as weaker demand drove steeper falls in new orders and output, a business survey showed on Wednesday. The S&P Global Russia Services PMI Business Activity Index fell to 48.7 in May from 49.7 in April, dropping deeper below the 50 mark that separates growth from contraction.
China's services activity expanded at the fastest pace in three months in May, helped by stronger growth in new business and a rebound in overseas demand, though rising cost pressures weighed on firms, a private-sector survey showed on Wednesday. The RatingDog China General Services Purchasing Managers' Index, compiled by S&P Global, rose to 54.4 in May from 52.6 in April, staying above the 50-mark that separates expansion from contraction.
Australia's economy slowed in the March quarter as strength in business investment was offset by a drag from trade, data showed on Wednesday, while higher borrowing costs and rising petrol prices cooled consumer demand. The pullback is likely to worsen as the Middle East conflict and rapid-fire policy tightening have sent household spending falling, house prices flatlining and the unemployment rate edging higher.
Japan's services sector ground to a halt in May after more than a year of expansion, as surging costs linked to the Middle East war dampened service demand and led to a 12-year high in output price inflation, a private survey showed on Tuesday. • The S&P Global final Japan Services Purchasing Managers' Index (PMI) fell to 50.0 in May from 51.0 in April, marking the end of a 13-month expansion streak. Readings above 50.0 indicate growth in activity, while those below point to a contraction.
U.S. job openings increased by the most in five years in April, but the surge likely overstates the labor market's health, as hiring declined against the backdrop of economic uncertainty stemming from the Iran war. The Job Openings and Labor Turnover Survey, or JOLTS report, from the Labor Department on Tuesday also showed resignations dropped to the lowest level in nearly six years in April, a sign of lack of confidence in the jobs market.
The largest exchange-traded fund (ETF) tracking U.S. software stocks clocked the biggest single-day buy-in by retail investors on record on Monday, data from Vanda Research showed. Software stocks have largely recovered their losses from earlier this year when fears of industry-wide disruptions due to the rise of AI gripped the sector, though volatility still persists.
Canadian Prime Minister Mark Carney, pressed about statistics showing the country is in a technical recession, on Tuesday told reporters that as the government pressed ahead with reforms "the data will be uneven". He continued: "We see some weakness, in part because of clear decisions made by the government." These included cutting back immigration and curbing government spending, he said.
US manufacturing activity grew at its fastest pace in four years in May. The Institute for Supply Management’s manufacturing PMI rose to 54.0, its highest level since May 2022, marking the fifth straight month of expansion. The stronger-than-expected growth suggests US factories are holding up well regardless of higher costs, supply chain disruptions and ongoing economic uncertainty.
Australian government spending was flat in the first quarter, data showed on Tuesday, offering no impetus to economic growth early in the year after a run of strong outcomes. Spending on operational items fell 0.2% in the March quarter from the previous quarter to an inflation-adjusted A$159.3 billion ($114.09 billion), the Australian Bureau of Statistics reported.
Australia's net trade proved to be a major drag on the economy in the first quarter as imports of data centre equipment and fuel boomed, while government spending added nothing to economic growth.
South Korea's consumer inflation quickened in May to a more than two-year high, exceeding market expectations on high oil prices triggered by the Middle East conflict, supporting the case for monetary tightening as early as next month.
The Bank of Canada on Monday cautioned against putting too much weight on recent GDP data which showed two consecutive quarters of decline on an annualized basis. Senior deputy governor Carolyn Rogers said while two quarters of annualized contraction in GDP did meet one definition of a recession, the April advance estimate showed the economy most likely rebounded.
Canada's manufacturing sector expanded for a second straight month in May as the potential for higher prices and product shortages due to the war in the Middle East likely boosted client demand, data showed on Monday.
The Swiss economy grew by 0.4% in the first three months of 2026, the government said on Monday, helped by a recovery in the manufacturing sector as the burden of U.S. tariffs eased. The figure was an acceleration from the 0.2% rate at the end of 2025 and was in line with the long-term Swiss quarterly growth rate.
Growth in euro zone manufacturing lost momentum in May as demand for goods stagnated and supply-chain disruptions linked to the Middle East war pushed input costs to their highest in four years, a survey showed on Monday.
Germany's manufacturing sector stalled in May as waning demand and soaring costs linked to the war in the Middle East weighed on activity, a business survey showed on Monday. The S&P Global Germany Manufacturing Purchasing Managers' Index (PMI) fell to 50.1 in May from 51.4 in April, a survey by S&P Global showed, holding above the 50 mark separating growth from contraction.
Euro zone consumers kept steady or lowered their inflation expectations in April, a hopeful sign for policymakers that crucial medium-term price bets are not signalling any oversized shift away from the target, an ECB survey showed on Monday.
Cost pressures in Italy's manufacturing sector rose for a fifth month running in May, fuelled by the conflict in the Middle East, a survey showed on Monday. The measure of input cost inflation in the Italian S&P Global Manufacturing Purchasing Managers' Index (PMI) accelerated to 76.5 from 75.4 in April, the highest reading since May 2022.
Spain's manufacturing sector expanded modestly in May, at a slightly slower pace than in April, as disruptions linked to the Middle East conflict worsened supply delays, raised costs and weighed on demand, a business survey showed on Monday.
Federal Reserve officials continued on Friday to signal the U.S. central bank may need to raise interest rates in the future if the war in the Middle East leads to a persistent increase in already-high inflation. The potential shift in the monetary policy outlook has even been embraced by Fed Vice Chair for Supervision Michelle Bowman, one of the central bank's most dovish policymakers. Bowman told a conference in Iceland on Friday that the war and its resulting energy shock could change her view on the outlook for rates.
The U.S. trade deficit in goods contracted more than expected in April as a surge in exports blunted rising imports, but economists cautioned the trend was unlikely to be sustainable, with businesses ramping up investment in artificial intelligence. The advance report from the Commerce Department on Friday suggested the three-month U.S.-backed war with Iran, which has disrupted shipping in the Strait of Hormuz, had yet to have a significant impact on the nation's trade flows. The artificial intelligence spending boom is largely dependent on imports, including computer chips.
Brazil's economy rebounded in the first three months of 2026, supported by household consumption and stronger investment, against a backdrop of a tight labour market and government stimulus that has clouded the outlook for interest rate cuts. Latin America's largest economy expanded 1.1% from the prior quarter, government statistics agency IBGE said on Friday, slightly above the 1.0% growth expected in a Reuters poll.
Inflation in the euro zone's four largest economies hovered above the European Central Bank's 2% target for a third straight month in May, preliminary data showed on Friday, as a rise in fuel costs triggered by the Iran war began to feed through to other prices. Readings from France, Italy, Spain and Germany are likely to cement the case for a rate hike from the European Central Bank next month and stoke some worries about whether high inflation is beginning to take root in the euro zone.
Italy's economy grew by 0.3% in the first quarter from the previous three months, boosted by strong exports, national statistics bureau ISTAT said on Friday, revising up a previous printout pointing to a 0.2% expansion. The main effects of the conflict in Iran, which began with US-Israeli strikes on February 28, are expected to be felt from the second quarter.
Japanese authorities spent 11.7 trillion yen ($73.5 billion) intervening in foreign exchange markets over the past month to support the yen, but with only limited effect as the currency hovers near the same levels that prompted Tokyo to act. Ministry of Finance data released on Friday confirmed traders' suspicions that officials entered the market at the turn of the month, likely on multiple occasions during Japan's Golden Week holidays, when market liquidity was thin.
Nigerian President Bola Ahmed Tinubu said on Friday his economic reforms stabilised the country and revived investor confidence, despite a steep cost-of-living squeeze on households three years into his presidency. Tinubu, who is seeking re-election in January, cited a near fivefold surge in the stock market to a record 250,000 points, rising market capitalisation and increased infrastructure spending, including more than 2,700 km (1,678 miles) of roads under construction or rehabilitation, and ongoing rail upgrades.
Bank of England Governor Andrew Bailey said on Friday that allowing inflation to run above the central bank's 2% target is justified given the uncertainty about the impact of the Iran war on the economy and the weak pace of growth. "But that tolerance would weaken if signs of second-round effects begin to emerge," Bailey said, referring to longer-term inflation pressures, in a speech at a conference in Reykjavik organised by Iceland's central bank.
Italian EU-harmonised consumer prices (HICP) rose by 0.4% in May from the month before, with the annual inflation rate surging to 3.3% from 2.8% in April amid increasing energy costs due to turmoil in the Middle East, preliminary data showed on Friday. The reading was slightly above a median forecast in a Reuters survey of 17 analysts which pointed to an increase of 0.3% month-on-month and a year-on-year rise of 3.2%.
Inflation fell in four key German states in May, preliminary data showed on Friday, suggesting Germany's national inflation rate could ease this month despite higher energy prices due to the Iran war. In Bavaria, the inflation rate fell to 2.6% in May from 2.9% in April. In North Rhine-Westphalia, it decreased to 2.4% from 2.7%, in Baden-Wuerttemberg to 2.4% from 2.6% and in Lower Saxony it fell to 2.7% from 3.0%.
Taiwan's tech-driven economy is expected to grow at its fastest pace in 16 years in 2026, the government statistics agency said on Friday, thanks to booming demand for artificial intelligence-related technologies. Gross domestic product is now expected to be 9.64% higher than a year earlier, the agency said, the quickest pace since 10.25% was recorded in 2010 and revising up the 7.71% forecast it issued in February.
Italy's unemployment rate fell slightly to 5.1% in April and a net 123,000 jobs were created during the month, national statistics bureau ISTAT reported on Friday. • The jobless rate was below a median forecast of 5.3% in a Reuters poll of eight analysts, following a 5.2% rate in March.
Indonesia's annual inflation rate likely accelerated in May to 2.97%, a Reuters poll showed on Friday, closer to the upper end of the central bank's target range amid rising prices of non-subsidised fuel, airfares and cooking oil. Following are details from the survey for Indonesia's inflation rate in May, its trade performance in April and context about the economic data:
