Indicator scoreboard
EMU - February merchandise trade deficit with the rest of the world was E1.0 billion, above the deficit of E1.8 billion a year earlier (EMU-11 plus Greece). Exports including Greece rose 11.1 percent on the year, while imports rose 10.0.

Germany - March Ifo Institute's west German business sentiment index dropped for the ninth time in ten months to 93.9, its lowest level since July 1999. Both business expectations and current conditions dropped, pointing to a further slowing of the German economy in the months ahead.

March producer prices rose 0.2 percent and 4.9 percent when compared with last year. The annual rate is the highest rate since July 1982. The increase was mainly caused by higher food and non-oil energy prices. Oil product prices dropped 1.9 percent on the month but increased 3.5 percent on the year. March seasonally adjusted producer prices rose 0.4 percent and 4.9 percent on the year. Over the six months to March, pan-German producer prices rose at an annualized rate of 4.3 percent, down from the 5.2 percent rate in February. The six month rate's recent high is 6.3 percent in October 2000.

April preliminary consumer prices rose 0.3 percent and 2.8 percent when compared with last year. The preliminary harmonized index of consumer prices rose 0.3 percent and 2.9 percent on the year. On a seasonally adjusted basis, the CPI rose 0.3 percent and 2.8 percent from a year earlier.

March import prices dropped 0.3 percent but rose 4.2 percent when compared with last year. The decline was due largely to lower oil prices. Excluding oil and oil product prices, import prices rose 0.3 percent on the month and 4.9 percent on the year. The ex-oil import price rise was due largely to higher food import prices, in particular meat and meat products.

France - March final unadjusted consumer price index rose 0.4 percent and 1.3 percent when compared with last year. Higher clothing prices in March, following discounts in January-February, along with rising food prices outweighed the lower energy prices. The seasonally adjusted CPI rose 0.3 percent on the month, for an annual increase of 1.4 percent. Seasonally adjusted core inflation rate, which excludes administered prices and volatile sectors like food and energy, rose 0.1 percent on the month and 1.6 percent on the year.

March seasonally and workday adjusted consumer spending on manufactured goods surged 1.3 percent. Excluding autos, parts and pharmaceuticals, spending on manufacturing goods was up 1.1 percent on the month and 4.5 percent on the year.

March seasonally adjusted number of unemployed fell by 0.9 percent or 20,000, cutting the International Labor Organization unemployment rate 0.1 point to 8.7 percent. When compared to March 2000, when the ILO rate stood at 10.0 percent, unemployment was down 322,000 or 12.3 percent, according to the ILO definition, which excludes jobseekers who did any work during the month.

March producer price index was flat but rose 2.8 percent when compared with last year because of lower energy prices and stable semi-finished goods. Industry energy prices fell 1.2 percent on the month after a 0.2 percent rise in February, for a 1.9 percent on the year. Excluding energy and food, the core PPI was also flat but was up 2.3 percent on the year. Food and agriculture prices were up 1.1 percent on the month and 5.6 percent higher on the year.

Fourth quarter final seasonally and workday adjusted real gross domestic product was revised up to an increase of 1.0 percent from 0.9 percent on stronger investment growth. GDP rose 3.0 percent when compared with last year. Real quarterly investment growth was revised up sharply to 3.0 percent from 2.4 percent, with the largest revisions for business and public investment.

Italy - March merchandise trade surplus with non-EU countries of 984 billion lire, compared with a surplus of 1.740 trillion lire in March 2000. Non-EU imports were up 11.8 percent, while exports were up 7.0 percent on the year. February trade balance with its EU partners improved marginally compared with a year ago to post a negligible deficit of L97 bln, compared with a deficit of L363 bln in February last year. February EU exports rose 14.4 percent on the year, and imports were up 12.9 percent. The February world trade surplus stood at L171 bln, slightly up from a surplus of L33 bln in February 2000. Imports rose 10.8 percent year-on-year, while exports were up 11.1 percent.

April preliminary harmonized index of consumer prices jumped 0.4 percent and 3 percent when compared with last year. This is the highest year-on-year level since October 1996, when the index posted a 3.1 percent jump.

Britain - March merchandise trade deficit with countries outside the European Union widened to Stg2.646 billion, its highest level in three months. The deterioration in the non-EU balance was largely due to a large drop in exports to the United States. This caused the trade balance with the United States to show a deficit totaling Stg183 million following a surplus of Stg534 million in February. In value terms, exports to non-EU countries fell 7.9 percent while imports rose 0.7 percent. February global trade in goods gap narrowed slightly in February to Stg2.285 billion following a Stg2.552 billion shortfall in January.

Business optimism dropped sharply in the three months ending in April according to the Confederation of British Industry. The survey showed the business optimism balance sliding to a minus 29 percent in the three months to April from minus 3 percent in the three months to January.

First quarter preliminary gross domestic product rose 0.3 percent and 2.5 percent when compared with last year. Service sector output grew 0.7 percent, the same rate as in the fourth quarter. The annual rate picked up to 3.6 percent from 3.3 percent in the fourth quarter. Output of the production industries is estimated to have fallen in the first quarter as a result of declines in mineral extraction including oil and gas, and in manufacturing.

Belgium - The March seasonally adjusted Belgian National Bank's composite industry indicator dropped a sharp 5.4 point to its lowest level since February 1999, pointing to a further slowdown in EMU output in coming months. The drop is due mainly to a "marked deterioration" in the manufacturing component and to a lesser extent the decline in construction. The sliding Belgian index, which smoothes monthly fluctuations, has declined for the past year. The bank said this reflects eroding sentiment in the manufacturing sector, which will very certainly" continue lower in coming months. The Belgian manufacturing sector is widely seen as a leading cyclical indicator for the eurozone as a whole, given its concentration on semi-finished goods and the large share of exports to major neighboring EMU economies.

Asia
Japan - Fourth quarter seasonally adjusted gross domestic product was revised down to 0.7 percent because the contributions from net exports and business spending were lowered.

First quarter seasonally adjusted capital spending rose 8.2 percent from the previous quarter and 6.6 percent when compared with a year ago. Machinery orders, a leading indicator of capital spending, have expanded for a record six straight quarters. Manufacturers spent 7.0 percent more on equipment in the first quarter, while non-manufacturers increased investment by 8.5 percent.

March seasonally adjusted sales at large retailers fell 3.3 percent. At stores open at least a year, sales dropped 3.1 percent from a year earlier, the 35th straight decline. Sales at department stores fell 2.8 percent in while supermarket sales fell 4.3 percent. Total retail sales rose 1.6 percent in March from a year ago, after falling 0.5 percent in February. That was the second rise in almost four years. A 19 percent increase in demand for household appliances led the rise.

The quarterly consumer confidence index, which measures how consumers view economic conditions over the next six months, fell for the second straight time in March, suggesting consumers will tighten their purse strings this year.

March seasonally adjusted industrial production declined 2.1 percent, more than twice the drop economists expected. For the January to March quarter, output dropped 3.7 percent. The January to March drop was the worst rate of decline for output since the April to June quarter of 1998 when production sank 4.5 percent. In March the electrical machinery sector continued to lead other industrial output lower, falling 3.3 percent and plunging 7.3 percent for the first quarter.

Australia - First quarter consumer prices soared 1.1 percent and 6 percent when compared with a year earlier. While that's double the central bank's target band for inflation, it includes the impact of a 10 percent tax on goods and services introduced in July. The bank has said it will ignore the one-off impact of the tax as it aims to keep annual inflation between 2 percent and 3 percent. Excluding the impact of the GST, inflation is running about 2.5 percent annually. Contributing most to the price rise in the quarter was a 3.1 percent jump in food prices, the largest increase since the second quarter of 1989. Excluding food prices and government charges, the CPI rose 0.8 percent in the quarter.

Canada - February seasonally adjusted retail sales fell 0.3 percent but were up 4.3 percent when compared with last year. Consumers spent less in the automotive sector, down 1.8 percent, in the furniture sector, down 1.5 percent and in the clothing sector, down 0.7 percent. Spending remained unchanged in general merchandise stores and increased only marginally in stores classified as other retail. Excluding autos and recreational vehicle dealers, retail sales climbed 0.8 percent and 6.3 percent when compared with last year.

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