Global economic overview June 2015

By MCX Report

Despite intense talks, European officials and the International Monetary Fund (IMF) failed to strike a deal on Greece's bailout programme. Ultimately, Greece failed to make a €1.73 billion payment to the IMF by June 30.

US economy
Following Federal Reserve's policy meet (17 June), Chairperson Janet Yellen said she wanted "more decisive evidence" that labour markets were healing and that wages would increase beyond their current "subdued pace."

Earlier, the U.S. Labor Department said that the US economy generated 280,000 new jobs in May. The unemployment rate edged up to 5.5%, but mainly because more Americans entered the labour force in search of work.



Construction starts on new US homes fell 11.1% to an annual rate of 1.04 million in May, pulling back from a surge in April and missing expectations, while the US industrial production unexpectedly fell in May.

US consumer sentiment rose to 96.1 in June, a five-month high, according to the University of Michigan gauge.

US trade deficit contracted by 19.2 % in April, the sharpest drop in more than six years.

European economy

Just before Greece actually defaulted, Greek leaders imposed capital controls and closed banks beginning 29 June, to prevent panic withdrawals after the European Central Bank capped emergency funding for Greece's banking system.

Meanwhile, the European Central Bank left its main interest rates unchanged at a record low.

Asian economy

China's official manufacturing purchasing managers index was flat at 50.2 in June, while the preliminary HSBC China Manufacturing Purchasing Managers’ Index rose to 49.6 in June from 49.2 inMay.

China's exports fell 2.5% in May from a year earlier in dollar terms, after a drop of 6.4% in April. Imports in May fell 17.6% y-o-y, compared with a 16.2% drop in April.

Japanese exports grew the slowest (2.4% y-o-y) in 9 months inMay as shipments to the U.S. and China slowed.


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