Indicator scoreboard
Germany - April seasonally adjusted industrial production was revised to a decline of 1.2 percent from the originally reported drop of 1.0 percent. Industrial production excluding construction - the figure that Eurostat uses when publishing eurozone industrial output - was revised to a 1.4 percent drop from the initially reported decline of 1.1 percent. Manufacturing output was revised to a decline of 1.3 percent from the original 1.1 percent drop.

June Ifo Institute west German business sentiment rose to 88.8 from 87.6 in May. Both current conditions and expectations improved. Expectations rose to their highest level since September 2002, reaching 98.6 from 97.2 in May. Current conditions rose to 79.4 from 78.3, the first increase since January. Sentiment in all four industry sectors (retail, manufacturing, wholesale and construction) improved. East German business sentiment rose to 102.0 from May's at 100.9. Expectations rose to 84.9 from 81.6, current conditions fell back to 120.3.

France - May seasonally and calendar adjusted consumer spending on manufactured goods dropped 1.6 percent, with declines in all categories led by clothing and autos. Sales were up 1.0 percent when compared with last year. Clothing and textiles sales plunged 4.1 percent after a 2.1 percent drop in April. Auto sales were down 3.7 percent and 7.5 percent lower on the year. Excluding autos, auto parts and drugs, spending was down 1.2 percent but still 2.7 percent higher on the year.

First quarter seasonally and workday adjusted gross domestic product climbed 0.3 percent and 1.1 percent when compared with last year. Consumption rose by 0.5 percent while investment inched up 0.2 percent.

May producer prices declined 0.4 percent but were up 0.7 percent when compared with last year. The drop was due to sinking energy prices, which were down 2.2 percent on the month. Excluding food and energy, the PPI was flat and up 0.6 percent on the year.

May seasonally adjusted unemployment rose by 9,000 but the unemployment rate remained at 9.3 percent. The data are calculated using the International Labour Organization which excludes jobseekers who did any work during the month. Last month's postal strikes may have delayed the arrival of jobseekers' declarations, giving a downward bias to the results, the Ministry cautioned.

Italy - April retail sales jumped 5.7 percent when compared with last year. The increase was due to soaring food sales mainly due to seasonal factors. Seasonally adjusted April retail sales were up 0.9 percent.

April seasonally adjusted unemployment rate declined to 8.8 percent from a revised 8.9 percent in January. This is the series' lowest level since it was created in October 1992. The unemployment drop occurred because of a decline in those looking for work rather than an increase in the number of jobs. ISTAT employment surveys are carried out every three months (January, April, July and October).

Britain - First quarter gross domestic product was revised downward. GDP managed to inch up 0.1 percent and 2.1 percent when compared with last year. The reason for the downward revision was a sharp change in construction output from a gain of 2.1 percent to a drop of 1.9 percent. There were also downward revisions to household spending and gross fixed capital formation.

Belgium - June Belgian National Bank business sentiment index plunged to minus 21.5, the lowest level since August 1993. The decline primarily reflected the erosion in manufacturing sentiment, which fell to a 10-year low of minus 26.5. Belgian industry morale is widely seen as a good indicator of eurozone growth six months ahead, given its large semi-finished goods sector and its dependence on European demand.

Asia
Japan - May seasonally adjusted merchandise trade surplus narrowed to ¥758.2 billion ($6.4 billion). Imports rose 2.5 percent, the biggest gain in six months, and exports increased 1 percent. The closure of several nuclear reactors resulted in a surge of oil imports, which jumped 10.1 percent from a year earlier. Exports of communications and video equipment rose. The growth in the volume of exports, which doesn't take into account currency fluctuations, has slowed every month since November when it rose 18.2 percent from a year earlier. It rose 2.5 percent in May. Export volumes to Asia rose 4.4 percent, the smallest gain since March 2002.

May seasonally adjusted industrial production rose 2.5 percent and was up 1.6 percent when compared with last year. The gains in May were helped by extra working days because of a shortened Golden Week holiday, and because companies moved their China production home to prevent supply disruptions amid the SARS outbreak on the mainland.

June Tokyo consumer price index and core CPI, which exclude volatile fresh food prices, both fell 0.4 percent when compared with last year. May nationwide CPI fell 0.2 percent and the core CPI sank 0.4 percent on the year. Since March 2001, the Bank of Japan has used nationwide core CPI as its main price indicator.

May seasonally adjusted unemployment rate was unchanged at 5.4 percent. Companies in the manufacturing, retail and wholesale industries cut jobs, while the medical and welfare industries added jobs.

May real seasonally adjusted spending by Japanese wage earners fell 2.2 percent and 1.8 percent when compared with last year. Wage earner spending is an important gauge of personal consumption, which accounts for roughly 55 percent of Japan's gross domestic product. The propensity to consume index, which measures the proportion of disposable income that households spend in the month, fell to a seasonally adjusted 69.2 percent from 73.1 percent in April.

Americas
Canada - April retail sales fell by 0.9 percent but rose 2.2 percent when compared with last year. All sectors declined with the exception of food. Two factors conspired to depress sales - sinking gasoline prices and the outbreak of SARS in the greater Toronto area. Excluding auto sales, retail sales sank 1.2 percent but were 3.2 percent higher on the year. In constant dollars, retail sales declined 0.3 percent in April, after falling 0.8 percent in March.

May monthly gross domestic product fell 0.2 percent after remaining unchanged in March. This was the economy's first contraction since September 11, 2001. Most sectors declined. On the year, monthly GDP rose 1.95 percent. Consumer spending was stalled and industrial production (manufacturing, mining and utilities) fell for the third consecutive month. Manufacturing weakness was widespread. International travel in and out of Canada declined 5.8 percent in April and same-day trips to Canada from the United States declined 5.6 percent. Some of this was due to the long declining trend since September 11, 2001, some due to SARS in the Toronto area, and some because of the U.S. economy.

May industrial product price index declined 2.0 percent and 1.7 percent when compared with last year. The decline was in large part because of the stronger Canadian dollar relative to the U.S. dollar. On the month, lower prices for motor vehicles and other transport equipment and petroleum and coal products were the major contributors to the decline of the IPPI. The petroleum and coal groups continued to be an influence on the year-over-year change with an increase of 7.1 percent. If petroleum and coal product prices had been excluded, the IPPI would have declined 2.3 percent instead of decreasing 1.7 percent on a year-over-year basis.

May raw materials price index dropped 2.5 percent and 0.5 percent when compared with last year. Mineral fuels were the major contributors to the monthly decrease with prices declining 3.8 percent. Crude oil prices were 4.9 percent lower in May than in April. Prices for wood products, vegetable products and ferrous materials were also lower.

In May, the value of the U.S. dollar continued to weaken against the Canadian dollar, pushing down prices of commodities that are quoted in U.S. dollars, notably motor vehicles and lumber products. As a result, the total IPPI excluding the effect of the exchange rate would have decreased 0.5 percent instead of 2.0 percent. On a 12-month basis, the influence of the dollar is much stronger. Consequently, the IPPI excluding the effect of the exchange rate would have increased 1.6 percent rather than declining 1.7 percent in May from May 2002.

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