Indicator scoreboard
EMU - March preliminary merchandise trade surplus with the rest of the world rose to E4.3 billion, from a revised February surplus of E0.3 billion and above the surplus of E3.6 billion a year earlier. In the first quarter, the EMU-12 posted a trade deficit with the rest of the world of E1.7 billion after a surplus of E0.4 billion in the fourth quarter (EMU-11) and a deficit of E1.9 billion in the first quarter 2000 (EMU-11). March exports rose 8 percent and imports rose 4 percent when compared with a year earlier.

Germany - April Ifo Institute's west German business sentiment index dropped to 92.5. This was its lowest level since May 1999 and marked the 10th decline in 11 months. Both business expectations and current conditions dropped again. The current conditions index at 88.5 is now at its lowest level since June 1999, while the expectations index at 96.6, is at its lowest level since March 1999.

April seasonally adjusted producer price index rose 0.3 percent and 5.0 percent when compared with last year. Over the six months to April, the PPI rose at an annualized rate of 3.7 percent, down from the 4.3 percent rate in March. Not seasonally adjusted producer prices jumped 0.5 percent and 5.0 percent on the year. The April PPI rise was mainly caused by higher prices for energy, especially oil products, and for food, in particular meat.

German first quarter gross domestic product rose 0.4 percent and 1.6 percent when compared with last year. First quarter growth was due largely to stronger net exports, as domestic demand fell. Calendar adjusted growth fell to 2.0 percent when compared with last year, down from 2.6 percent in the fourth quarter. The sole contributors to first quarter growth were government spending, up 0.4 percent, and net exports, up 3.0 percent. Total investment declined 2.4 percent as a drop in construction of 5.7 percent offset a gain in equipment up 1.7 percent.

May preliminary unadjusted national consumer price index rose 0.3 percent and 2.8 percent when compared with last year. However, the harmonized index of consumer prices, which is used by the ECB in monetary policy determination, leaped 0.6 percent and 3.6 percent when compared with last year. The 3.6 percent rate was by far the highest in the history of the German HICP index, which began in January 1995. The inflation jump came mostly from higher food, motor fuel and home heating oil prices. May seasonally adjusted rate of consumer inflation over the preceding six months rose to 3.5 percent from 3.2 percent in April. May seasonally adjusted CPI rose 0.4 percent and by 3.5 percent from May 2000, up from an annual rate of increase of 2.9 percent in April.

March real seasonally adjusted construction orders fell 0.7 percent and 10.7 percent when compared with last year. West German total construction orders fell 2.4 percent, but in east Germany they rose 4.7 percent from February levels.

France - April seasonally and workday adjusted consumer spending on manufactured goods fell 0.8 percent but was up 3.2 percent on the year. Clothing and household durables sank. The spending decline was moderated by a further 1.1 percent rise in auto sales. But excluding autos, parts and pharmaceuticals, spending on manufacturing goods was down 1.5 percent in April after a 0.5 percent gain in March.

First quarter preliminary seasonally and workday adjusted gross domestic product rose 0.5 percent and 2.7 percent when compared with last year. Private consumption rose 1.3 percent. But investment growth slowed sharply to an increase of 0.7 percent from a 2.3 percent jump in the fourth quarter. Exports fell back 0.6 percent while imports dropped 1.7 percent, so that net exports made a positive contribution of 0.3 point to GDP. However, excluding major aerospace and naval projects, exports dropped 2.1 percent while imports fell only 1.2 percent, cutting 0.3 point from growth. First quarter growth was the slowest in over two years.

Italy - April merchandise trade balance with non-EU countries continued to worsen when compared with the year before, posting a surplus of L416 billion compared with a L680 billion surplus in April 2000. Non-EU imports were up 17.1 percent while exports were up 14.8 percent when compared with last year. March trade balance with EU countries improved to a surplus of L385 billion (EU trade data are reported a month behind that for non-EU trade) compared with a deficit of L284 billion in March 2000. March EU exports rose 12.2 percent on the year, more than imports, which were up 9.2 percent. March world trade surplus was L1.479 trillion, with imports rising 10.3 percent year-on-year and exports up 10.0 percent.

March unadjusted industrial orders fell 5.4 percent when compared with last year. Domestic orders sank 4.5 percent and foreign orders declined 6.7 percent when compared with last year. Domestic orders account for around 62 percent of the overall index, with foreign orders making up some 37 percent. March seasonally orders rose 2.5 percent from February. Domestic orders climbed 5.9 percent on the month, while orders from abroad were down 2.5 percent.

March retail sales rose 2.6 percent when compared with last year. Retail sales data are measured in nominal value terms and not adjusted for rises in consumer prices. March non-food sales, which account for about 80 percent of the total index, rose 2.0 percent on the year. All 14 sectors rose, with the strongest increase in pharmaceutical products, which were up 5 percent.

Britain - First quarter merchandise trade goods deficit with the rest of the world increased to its widest since records began in 1697. First quarter balance showed a deficit of Stg5.2 billion, compared with a deficit of Stg4.7 billion in the fourth quarter of 2000. The March total deficit on both goods and services rose to Stg2.882 billion from Stg2.293 billion the month before. The monthly goods trade deficit totaled Stg3.133 billion when oil and erratic items are excluded. The March service balance showed a surplus of Stg769 million, down from a surplus of Stg834 million in February. Total exports of goods fell 4 percent while total imports of goods fell 0.5 percent. Exports to EU countries fell 1 percent while imports fell 1.5 percent. Exports to non-EU countries fell 8 percent, while imports rose 0.5 percent.

First quarter gross domestic product was revised to 0.4 percent (from 0.3) and 2.6 percent (from 2.5) when compared with last year. The upward revision mainly reflects higher quarterly estimate of service sector output now estimated to have risen 0.8 percent on the quarter and 3.7 percent when compared with last year. First quarter production output fell sharply, declining 0.7 percent although it was still 0.6 percent higher than a year earlier. Within this category, manufacturing output is estimated to have fallen by 0.7 percent but was 1.1 percent above levels a year ago. Household spending rose 0.6 percent on the quarter and 3.3 percent on an annual basis.

Asia
Japan - April seasonally adjusted merchandise trade surplus narrowed to 614.6 billion yen ($4.98 billion) from 799.5 billion yen in March. The surplus shrank 41.6 percent when compared with last year. Exports fell for the first time in 18 months, declining 1.1 percent on the year while imports rose 13.2 percent. The average U.S. dollar/yen exchange rate during April stood at 123.99 yen, much higher than 106.02 yen a year earlier. Exports to the United States slipped 0.2 percent on year while imports jumped 8.4 percent. Exports to the European Union decreased 4.8 percent, while imports gained 7.3 percent, marking the fifth straight month of increase. Exports to Asia dropped 1.7 percent, marking the first decline in 23 months due to the weakness of the Asian economy. Imports from Asia grew 18.5 percent.

May seasonally adjusted consumer prices in Tokyo rose 0.1 percent but fell 0.6 percent when compared with last year. This was the 21st straight decline. Excluding fresh food, the CPI was unchanged this month and was 0.9 percent lower than a year ago, extending a two year slide in prices. April nationwide prices, excluding fresh food, fell 0.5 percent from a year ago.

April seasonally adjusted sales at large retailers rose 0.3 percent after declining 3 percent in March. At stores open at least a year, sales slid 3.5 percent, capping a third year of falling sales. Department store sales were unchanged from a year ago, after falling for the six straight months. Supermarket store sales declined 5.5 percent from a year ago, the 29th straight fall.

Americas
Canada - March retail sales rose 0.3 percent offsetting the 0.3 percent decline in February. Compared with a year earlier, total retail sales were 3.8 percent higher. Spending rose 1.9 percent for furniture and 0.9 percent for clothing in March, as well as 0.5 percent in the automotive sector, 0.4 percent in general merchandise stores and 0.4 percent in drug stores. Food stores recorded a decline of 0.3 percent. Retail sales excluding motor and recreation vehicles were unchanged on the month but up 5.1 percent on the year.

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