Trump demands more concessions as EU holds off on US tariff countermeasures

Key Movers

Recent data indicate that inflation is gradually stabilising, with headline CPI easing to 2.3% in April and 2.4% in May, while core CPI held steady at 2.8%. Early forecasts for June suggest a modest increase, with headline inflation expected to rise to 2.6% and core CPI to 3.0%. This moderation in inflation provides some relief for markets, although the slight upward revision signals that inflationary pressures remain a factor to monitor closely.

Retail sales have weakened over April and May, reflecting softer consumer demand. However, the control group sales—which are more directly linked to GDP growth—registered a small rebound, indicating pockets of resilience within consumer spending. Meanwhile, industrial production contracted slightly in May but is forecast to improve marginally in June, reflecting cautious optimism in manufacturing output.

Looking ahead, key economic indicators such as housing starts, builder sentiment, and consumer confidence will be crucial in shaping market expectations. These data points will offer insights into the strength of domestic demand and inform investment and business strategies.

Overall, the economic landscape remains mixed: easing inflation offers positive momentum, but softer retail sales and uneven industrial output highlight ongoing uncertainties. Market participants and business leaders should continue to navigate these conditions with a balanced approach, remaining vigilant to shifts in consumer behaviour and supply-side dynamics.