The UK's economic landscape saw a mix of positive and concerning indicators in April. Inflation, as measured by the Consumer Prices Index (CPI), slowed to 2.3% from 3.2% in March, driven by falling gas and electricity prices. The International Monetary Fund (IMF) raised the UK's growth forecast for 2024 to 0.7%, up from the previous 0.5% estimate. However, the UK government's borrowing reached 20.5bn in April, the fourth highest since 1993, and retail sales volumes contracted by 2.3% due to unusually wet weather. Despite this, the UK's composite Purchasing Managers Index (PMI) remained above 50, indicating expansion.
In North America, the University of Michigan's consumer sentiment index showed a decline to 69.1 in May from 77.2 in April, reflecting rising concerns over unemployment and slowing wages. However, the US economy demonstrated resilience as new orders for manufactured durable goods rose by 0.7% to $284.1bn in April, surpassing economists' forecasts.
Eurozone PMIs reached a 12-month high in May, with the output index rising to 52.3 from 51.7 in April. Additionally, German GDP grew by 0.2% quarter-on-quarter in Q1, driven by construction investment and net exports, although private and government consumption declined.
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