Providing you with a short summary of events from around the world ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Blackfinch Group
Market Update

The ever-changing world we live in reinforces the importance
of regular up-to-date communication. This weekly news update from our
multi-asset portfolio managers provides you with a summary of global events
 for your reference and to share with clients.

Issue 144 | 23rd May, 2023 

UK COMMENTARY

  • The Office for National Statistics (ONS) reported that UK Consumer Price Index (CPI) inflation fell to 8.7% for the 12 months to April, the lowest since March 2022. This was still higher than economists’ expectations of 8.2%. Core inflation, which strips out volatile food, drink, energy and tobacco price increase – increased despite the headline fall, while food price inflation remained at 19% close to a 45-year high.
  • UK retail sales rose 0.5% in April, according to the ONS. That followed a fall of 1.2% in March, when wet and windy conditions kept shoppers off the high street. Sales at non-food stores, such as department stores, jumped 1% following a fall of 1.8% in March. The ONS noted “strong sales in watches and jewellery, and sports equipment stores”.
  • UK economic growth was focused on the service sector in May, as  hospitality, leisure and travel sectors enjoyed resilient consumer demand, as reported by S&P Global. However, manufacturing production levels fell at the fastest pace in four months, pulling the S&P Global/CIPS flash UK Composite Purchasing Managers’ Index (PMI) Output Index down to 53.9 in May from a 12-month high of 54.9 in April (any reading over 50 shows expansion).
  • UK borrowing hit £25.6bn in April, £11.9bn higher than in April 2022, and the second highest since monthly records began in 1993 (behind April 2020, when the pandemic hit the economy). Spiking inflation and the cost of capping energy bills drove up borrowing, as reported by the ONS.
  • Rightmove reported that the average asking price for a home jumped £6,647 or 1.8% month-on-month in May, lifting the average asking price for a house coming to market to £372,894. This was the highest monthly increase for 2023 so far, and above the 1% increase typically seen during May.

NORTH AMERICA COMMENTARY

  • The S&P Global flash US Composite PMI Output Index, which tracks private sector output, increased to 54.5 in May, up from April’s 53.4. Service sector growth also hit a 13-month high, but manufacturing output dropped to a two-month low of 51.0.
  • Durable goods orders rose 1.1% in April following March's 3.3% gain. Durable goods orders (excluding transportation) fell 0.2%, the first decline this year. Core orders – nondefense capital goods orders excluding aircraft – rose 1.4%, supported by gains in orders for computers and machinery.

EUROPE COMMENTARY

  • Germany – Europe’s largest economy – fell into recession over the winter, as economic disruption caused by Russia’s invasion of Ukraine weighed on growth. German gross domestic product (GDP) contracted 0.3% in the January-March quarter, rather than stagnating as first estimated. This followed the 0.5% contraction of last October-December.
  • The HCOB Flash Eurozone Composite PMI fell to 53.3 in May from 54.1 in April, ending a sequence of six consecutive monthly gains. Apart from evidence of weaker momentum, signs of a two-speed economy intensified, with the services sector maintaining a brisk pace of growth, while the manufacturing sector downturn deepened. The gap between services and manufacturing is particularly large in Germany, where the services PMI surged to 57.8, offsetting a further slide in manufacturing to a three-year low.

Did you know we have a variety of additional
market update options to choose from?

Provide an exceptional advisory experience for your clients with our market updates including a live webinar presented by our investment team.

Simply sign up to as many as you would like to receive, and we'll do the rest!

Show Me HowForward 

1350-1360 Montpellier Court, Gloucester Business Park, Gloucester, GL3 4AH

Blackfinch Investments Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales No. 2705948. Registered Office: 1350-1360 Montpellier Court, Gloucester Business Park, Gloucester, GL3 4AH

This email, including any attachments, is intended only for use by the addressee(s) named herein and may contain legally privileged and/or confidential information. If you are not the intended recipient of this email (or the person responsible for delivering this document to the intended recipient), you are hereby notified that any dissemination, distribution, printing or copying of this email, including any attachment, is strictly prohibited. If you have received this email in error, please respond to the individual sending the message, and permanently delete the original and any copy of any email and printout thereof.

Please note that any views or opinions expressed in this email are solely those of the author and do not necessarily represent those of Blackfinch. While Blackfinch scans all outgoing emails for viruses, the recipient should check this email and any attachments for the presence of them. Blackfinch accepts no liability for any damage/loss caused by any virus transmitted by this email.