Retail Sales in the U.S. Rebounded in May; After COVID, is it Time for the UK to Invest in its Industry Again?; After COVID, is it Time for the UK to Invest in its Industry Again?; European economy ‘through the worst’ but activity still depressed.
Retail Sales in the U.S. Rebounded in May
Retail sales in the U.S. rebounded in May, rising 17.7 percent after a record drop in April, as stores and restaurants started to reopen.
After more than a month of quarantine, May brought a tentative restart of brick-and-mortar retail across most of the country, with major chains like Macy’s and Gap reopening hundreds of stores.
No matter how fleeting, the rebound in May is seen as a welcome boost, especially for small businesses.
Source: The New York Times.
Industrial Production Edges up in May
U.S. industrial output rises 1.4% last month vs. forecasts for a gain of 2.8%
Manufacturing output, which had dropped sharply in March and April, increased 3.8% in May, the Fed said. Most major industries saw gains, with the biggest rise posted by motor vehicles and parts.
Even so, total industrial production last month was 15.4% below its pre-pandemic level in February, according to the central bank.
Source: Market Watch.
After COVID, is it Time for the UK to Invest in its Industry Again?
The reopening of shops offers hope for recovery. Chancellor Rishi Sunak has pushed back an emergency budget to the autumn but is expected to give an economic update in July which could include interim measures to try to kickstart the economy.
It is expected that the government will announce tax cuts, new spending on infrastructure, and new investment green technology. Under the Project Birch scheme, the government will offer state support to key firms whose failure would have a “disproportionate” impact on the economy.
Source: The Guardian.
European economy ‘through the worst’ but activity still depressed
Europeans have begun to return to work, shopping and dining out, suggesting the worst of the economic damage inflicted by coronavirus pandemic lockdowns has passed, but overall activity remains well below normal standards, pointing to the long haul back to recovery the region faces.
Source: Financial Times.