Germany's industrial output has dropped unexpectedly, fuelling fears over the eurozone recovery. Industrial output dropped by 1.8% month-on-month in May, the biggest decline in two years. Economists had expected output to be unchanged, suggesting that the eurozone's largest economy slowed during the spring.
May has brought disappointing retail sales, falling industry orders and now a significant fall in production.
It has also been reported that German growth for the second quarter will be flat. Suggesting other euro countries and the ECB should not pin their hopes on the German engine of growth for the time being.
Investor morale across the eurozone has risen this month, helped by optimism over global economic prospects and the European Central Bank's new stimulus measures.
Investor morale beat expectations by jumping to 10.1 this month, up from 8.5 in May, according to Sentix's monthly index.
According to a survey of major recruiters salaries are surging, clashing with the government’s official measure of wage growth. The surveys show starting salaries are rising at their fastest pace in 17 years, contradicting official statistics that wage growth is rising by 1.7% the same as inflation. The figures are important because weak salary growth is one of the last factors holding back a rise in interest rates.
The main focus is on the UK with both industrial and manufacturing production (YoY) figures expected to come in higher than previous. We also have the NIESR GDP estimate out which is should come in at to 0.9%.
GBP - 9:30 - Industrial Production (YoY) expected higher at 3.1%
GBP - 9:30 - Manufacturing Production (YoY) expected higher at 5.6
GBP - 15:00 - NIESR GDP Estimate expected to be 0.9%
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