EUR
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.

EUR
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.

GBP
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.

Today
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%.

Key Announcements:
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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