Japanese manufacturers are markedly less confident about business than three months ago due to higher materials costs, the Reuters Tankan poll for June showed, though the index remained in positive territory for a fourth straight month.
Japan's weak yen sharply boosted the value of exports in May but the volume of sales shrank for the fourth consecutive month, highlighting that global demand is still relatively soft and complicating the central bank's monetary tightening path.
Analysts from Wells Fargo (NYSE:WFC) on Tuesday noted that May's weaker than expected retail sales data suggests a softening in consumer spending.
Production at U.S. factories increased more than expected in May, recouping all the declines in the prior two months, but the momentum is unlikely to be sustained amid higher interest rates and softening demand for goods.
U.S. retail salesincreased at a slower-than-anticipated rate on a monthly basis in May, pointing to lingering headwinds to momentum in consumer spending activity despite inflationary pressures showing signs of cooling.
The U.S. budget deficit will jump to $1.915 trillion for fiscal 2024, topping last year's $1.695 trillion gap as the largest outside the COVID-19 era, the Congressional Budget Office said on Tuesday, citing increased spending for a 27% increase over its previous forecast.