world economic news

Economic News Daily – Tuesday 07/06/2022

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GERMANY

Germany’s factory orders were down 2.7% in April compared to the previous month, the country’s Federal Statistical Office Destatis said in a report published on Tuesday. New orders dropped 6.2% year-over-year. On a monthly basis, foreign orders fell by 4% and domestic orders were down 0.9% in April.

AUSTRALIA

The Reserve Bank of Australia unexpectedly announced a 50 basis points increase in the cash rate on Tuesday to 0.85%. This was the first back-to-back rate hike in 12 years, as the board said huge monetary support is no longer needed amid the strength of the economy and the current inflation pressures. Analysts had been expecting a rate hike of 25 basis points or 40 basis points, according to Reuters.

THAILAND

The annual inflation rate in Thailand surged to 7.1% in May 2022 from 4.65% in the prior month. The latest reading was the highest since July 2008, with food prices gaining 8.18%, the most since March 2012, after a 4.83% rise in April, boosted by meats, eggs and dairy products, and seasonings, figures from the Ministry of Commerce revealed on Monday.

JAPAN

Average spending by Japanese households with two or more people was down 1.7 percent on year in April, coming in at 304,510 yen ($2,300), the Ministry of Internal Affairs and Communications said on Tuesday. That missed expectations for a decline of 0.8 percent following the 2.3 percent drop in the previous month. Household spending is a key indicator of private consumption, which accounts for more than half of Japan’s gross domestic product.