Germany's Annual Inflation Rate Drops to 2.2% in June 2024

In June 2024, Germany's annual inflation rate decreased to 2.2% from 2.4% in May, below the expected 2.3%. This was driven by lower goods prices, particularly energy costs (-2.1% vs -1.1%), despite slightly higher food prices (1.1% vs 0.6%). Core inflation, excluding food and energy, eased to 2.9%, the lowest since February 2022. Monthly CPI rose by 0.1%, consistent with May and below forecasts of 0.2%. The EU-harmonised CPI annual rate also dropped to 2.5% from 2.8%, below forecasts of 2.6%, with a monthly increase in line with expectations at 0.2%.

Source: destatis.de

US Manufacturing Activity Continues to Contract in June 2024

In June 2024, the ISM Manufacturing PMI fell unexpectedly to 48.5 from 48.7 in May, below forecasts of 49.1. This indicates the third straight month of declining manufacturing activity, driven by weak demand, reduced output, and stable input levels. Production, employment, inventories, and backlog of orders all showed contraction compared to the previous month.