US flash PMI downturn dampens second quarter rebound hopes

Hopes of US economic growth rebounding in the second quarter were dealt a blow by weak flash PMI data from Markit. A slowdown in the pace of growth signalled by the May surveys suggests the US economy could see GDP rise at a disappointing rate similar to that recorded in the opening quarter of the year.

UK consumers prop up ailing economy in first quarter

Updated official data confirm that the pace of UK economic growth slowed in the opening quarter of the year; a trend which survey data maintained into the spring.

UK house prices show signs of cooling after three-year surge

UK house prices fell 0.8% in April, according to the Halifax House Price Index. The fall followed a 2.2% surge in March, and still leaves home prices some 9.2% higher than a year ago. That's nevertheless a cooling in the annual rate of increase to the lowest since November of last year, suggesting that house price inflation may be starting to moderate

US flash manufacturing PMI sinks to lowest since September 2009

Disappointing flash manufacturing PMI data cast doubt on the ability of the US economy to rebound from its weak start to the year. The seasonally adjusted Markit Flash US Manufacturing PMI™ sank to 50.5 in May, down from 50.8 in April, its lowest since September 2009.

Japan flash manufacturing PMI signals steepening export-led downturn

PMI data point to Japan's all-important manufacturing economy suffering its steepest downturn since late 2012. The Nikkei Flash Japan Manufacturing PMI fell from 48.2 in April to 47.6 in May, its lowest since December 2012.

Eurozone flash PMI weakness fuels concerns over second quarter slowdown

A disappointing flash eurozone PMI for May adds further to the suggestion that the robust pace of economic growth seen in the first quarter will prove temporary.

Nigeria's economic worries mount as inflation hits near six-year high

Nigerian inflation accelerated to the fastest in almost six years during April, according to CPI figures released earlier today by the National Bureau of Statistics. Consumer prices rose 13.7% on an annual basis, up from 12.8% in March. The latest pick-up in price pressures was the sixth in as many months.

US retail sales buoy hopes of second quarter economic rebound

Hopes were raised for a second quarter rebound in the US economy as retail sales smashed expectations in April. Faster than expected sales growth and the prospect of an overall pick-up in the second quarter will further raise expectations of the Fed hiking interest rates again in coming months. However, with signs of the upturn remaining fragile, the chance of a June hike still looks low.

Hong Kong economy at risk of recession as GDP falls in first quarter

Hong Kong's economy contracted in the first quarter of 2016, and weak PMI survey data point to a heightened risk of a further decline in the second quarter, which would mean the economy has slipped back into a technical recession.

Bank of England warns of economic risks from Brexit

The Bank of England left policy unchanged at its May meeting, as widely expected. No serious discussions on any change in policy are anticipated at least until after the June 23rd referendum, given the uncertainty surrounding the outcome of the vote.

Global manufacturing output growth slows, underpinned by weak consumer demand

Global economic growth picked up slightly at the start of the second quarter of 2016, but was still one of the weakest seen over the past three years. The JPMorgan Global PMI^TM sector data indicate that services firms were the main drivers of higher global output, as manufacturers reported the second-slowest expansion seen in nearly three-and-a-half years.

Global financial activity rebounds in April

Markit's global sector PMI^TM data signalled renewed growth in the financial sector in April, following a weak spell in February and March. Solid increases in activity were registered in banks, real estate and insurance, which were ranked second, fourth and sixth in the global sector league table respectively. That said, other financial services posted a further drop in activity and was among the bottom-ranked sectors.

Struggling UK factories weigh on economic growth

UK factory output disappointed in March, confirming that the sector acted as a drag on the wider economy in the first quarter. Furthermore, worse may be to come in the second quarter.

Global economy stuck in low gear at start of Q2

Global economic growth ticked higher for a second successive month in April, according to the JPMorgan Global PMI™, compiled by Markit, but was still one of the weakest rates seen for over three years. The PMI is broadly consistent with global GDP growing at an annual rate of just 1.5% (at market prices) compared with a long-run average of 2.3%. Developed world growth continued to edge higher from February's recent low, though remained weaker than at any time seen since early-2013, while emerging markets returned to stagnation.

UK trade deficit at eight-year high

A record goods trade deficit in the first quarter is the latest sign that the UK's economic woes are deepening.

UK employers turn to temporary staff amid rising uncertainty

Signs of a slowing economy and uncertainty around Britain's EU referendum appear to have resulted in a shift in emphasis from permanent to temporary hiring among UK employers. The Report on Jobs, published today by Markit and the REC, shows that recruitment agencies' permanent staff placements rose at the slowest pace for seven months in April. In contrast, billings from the employment of temporary/contract staff increased at the strongest rate since March 2015.

Waning US hiring trend adds to signs of second quarter economic weakness

The pace of hiring in the US eased more than expected in April, adding to signs that the slowing in the rate of economic growth in the first quarter may persist into the second quarter.

New election called amid signs of political uncertainty affecting the Spanish economy

Spain is set for a further period of political uncertainty as the deadline passed for the country's political parties to come to an agreement on the formation of a government following the December 20^th election. A new vote has been called for June 26^th, with parliament likely to meet again towards the end of July. If, as seems likely, the result of the new election is similar to that of the first, it could be late into the third quarter of the year before Spain has a permanent government in place.

Global manufacturing stagnates at start of second quarter

Global PMI data indicated a near-stagnation of the manufacturing economy in April. The JPMorgan PMI, compiled by Markit from its worldwide business surveys, fell from 50.6 in March to 50.1, barely above the no-change threshold of 50.0. The latest reading was the lowest since December 2012 with the exception of the stagnation seen in March of this year.