The US manufacturing index fell and consumer spending continued to grow. The manufacturing index of the Federal Reserve of New York and Philadelphia fell sharply in May, indicating that the manufacturing activity in the United States is facing downward pressure. The month on month growth rate of retail sales in April was slightly higher than that in March, which was in line with market expectations. However, it remains to be seen whether consumer spending can remain strong under the influence of high inflation. In addition, this week, US Federal Reserve Chairman Powell said that he would continue to promote monetary policy tightening until inflation fell significantly. At present, the market expects the fed to raise interest rates by 50 basis points in the next two meetings.
Inflation in the eurozone continued to rise, and the possibility of the European Central Bank raising interest rates in July increased. According to the minutes of the April meeting released by the European Central Bank, central bank officials generally believe that inflation remains high and higher than expected, increasing the risk of wage inflation spiral. The impact of high energy prices is spreading to all industries. There are more and more hawkish signs that the European Central Bank will consider raising interest rates this week, including the European Central Bank.
