Indicator scoreboardEMU — June flash harmonized index of consumer prices (HICP) rose 1.7 percent when compared with last year. This is the lowest annual rate of increase in two and a half years. The HICP fell below the ECB's 2 percent price stability limit for the first time since May 2000 and is the lowest annual rate since December 1999.  May M3 money supply growth rose 7.8 percent when compared with last year. The three-month moving average rose 7.5 percent when compared with the same months in 2001. The latest reading remains well above the ECB's 4.5 percent M3 growth reference rate for this year.  April current account deficit was €5.8 billion, lower than the €6.7 billion deficit in April 2001. The improvement in the current account was the result of an increase in the goods trade surplus. First quarter total hourly labor costs rose 3.7 percent on the year, up from an annual rate of 3.3 percent in the fourth quarter. The effect of the shift of Easter holidays into the first quarter boosted Spanish year-over-year wage growth, but is expected to have a reverse effect in the second quarter. German wages are expected to show an upward effect in the second quarter due to recent high union wage deals. Germany — June Ifo Institute's west German business sentiment index slipped to 91.3 from 91.6 in May. Current conditions index rose to 78.3 from 77.7 in May, but business expectations posted a decline to 104.9 from 106.2 in May. Business expectations have been rather volatile in the past three months, while the upward trend in the current conditions' index has been more pronounced.  May seasonally adjusted producer prices were unchanged but the annual rate fell 0.9 percent. Non-seasonally adjusted producer prices were unchanged in May, with the annual rate also declining 0.9 percent. A decline in energy prices was offset by rising capital goods prices. Excluding energy prices, PPI remained unchanged on the month and rose 0.2 percent on the year. France — May producer price index declined 0.3 percent and 1.5 percent when compared with last year. Excluding energy and agriculture the PPI was flat but down 0.2 percent on the year. Energy prices dropped 1.6 percent after four months of increases and were 6.2 percent lower on the year. May unemployment dipped by 2,000, according to International Labor Organization estimates, which left the unemployment rate steady at 9.1 percent. The May decline brought the number of jobless to 2.426 million, still up 147,000 on the year, according to the ILO definition which excludes jobseekers who did any work during the month.  Italy — April seasonally adjusted unemployment rate was 9.1 percent, the same as in January. The seasonally adjusted total number of job seekers in April was down 0.6 percent from January. Italy conducts its employment survey four times a year. April unadjusted retail sales rose 1.2 percent on the year. The series is measured in nominal value terms and is not adjusted for rises in consumer prices. The retail sales data are not closely watched by analysts because, unlike new car registration data, they show no correlation with consumer spending as published in quarterly GDP statistics. Indeed ISTAT does not use its own retail sales data to compile its private consumption statistics. Britain — First quarter gross domestic product growth was revised to up 0.1 percent on the quarter from the previous estimate of unchanged. The fourth quarter was also revised up to 0.1 percent from flat. The revision was due to stronger construction output data. When compared with last year, GDP rose 1.2 percent. Service sector growth remained fairly subdued, at an unrevised 0.2 percent on the quarter and up 2.4 percent on the year. Production output fell 1.2 percent and was down 5.6 percent on the year.  Asia Japan — May seasonally adjusted retail sales rose 1.3 percent after a 0.8 percent drop in April. From a year ago, sales fell 3 percent. A five-month increase in exports, which makes up 10 percent of the economy, is helping consumer confidence and boosting spending. Sales at supermarkets and department stores rose 0.4 percent but dropped 1.6 percent on the year. May jobless rate rose to 5.4 percent as manufacturers and retailers cut jobs. Seasonally adjusted, 390,000 jobs were lost. There were 53 jobs for every 100 applicants at state run work centers last month, up from 52 in April.  May seasonally adjusted real spending by wage earners fell 2.5 percent and 0.4 percent when compared with last year. Spending data are quite volatile, moving in fits and starts. Wage earner spending is an important gauge of personal consumption, which accounts for roughly 55 percent of Japan's gross domestic product. The seasonally adjusted propensity for wage earners to consume, a ratio that measures the amount of disposable income that went to household spending, fell to 70 percent from 73.6 percent in April. June Tokyo consumer price index was unchanged but declined 0.8 percent on the year. Falling housing, clothing, and entertainment prices accelerated deflation in Tokyo during the month, but price increases in fresh food moderated declines. Tokyo core CPI, which excludes fresh food prices, fell 0.1 percent and 1.0 percent on the year. May nationwide consumer price index rose 0.3 percent but fell 0.9 percent on the year. The nationwide core consumer price index, which excludes prices of fresh foods, rose 0.1 percent but fell 0.8 percent when compared with last year. This was the 32nd straight month that the index has fallen. Declines in clothing and entertainment prices led overall nationwide prices lower. May industrial output jumped 3.9 percent marking the fourth straight increase. However, industrial output is down 2.2 percent when compared with last year. The increase was powered by higher output of electrical and general machinery. Rebounding demand overseas has provided the main impetus for manufacturing, giving a huge boost to Japan's electronics companies and equipment makers. The output surge in May — the biggest rise since September 1992 — was a result of manufacturers revving up production of IT-related goods. Americas Canada — May industrial product price index (IPPI) dropped 0.7 percent and 2.6 percent when compared with last year. This was the eighth consecutive year-over-year decline and was the largest decrease since the beginning of 2002. On an annual basis, petroleum and coal product prices fell 16.5 percent in May, the eleventh successive month of negative year-over-year change. Had petroleum and coal product prices been excluded, the IPPI would have decreased 1.6 percent instead of 2.6 percent. 
May raw materials price index (RMPI) rose 0.6 percent but was 5.4 percent lower than May 2001. This was the tenth consecutive year-over-year decline. Mineral fuels, down 6.3 percent were responsible for part of the decline along with decreased prices for animal products, wood products and non-ferrous metals. Had mineral fuels been excluded, the RMPI would have declined 4.5 percent instead of 5.4 percent. During May, the value of the U.S. dollar against the Canadian dollar weakened, pushing down prices of commodities that are quoted in U.S. dollars. As a result, the total IPPI excluding the effect of the exchange rate would have decreased 0.2 percent instead of 0.7 percent. On a 12-month basis, however, the influence of the dollar had no real impact. The IPPI was down 2.6 percent in May from May 2001; without the exchange rate effect, the IPPI would have decreased 2.7 percent. April real gross domestic product at factor cost surged 0.8 percent, the seventh consecutive monthly advance, thanks to continuing consumer strength, manufacturing gains and higher sales of cars, trucks and lumber. Goods producing industries rose 1.6 percent, services were up 0.4 percent, manufacturing rose 2.4 percent, wholesale trade was up 2.0 percent and retail trade edged up 0.3 percent.  | 
