Atlanta Fed GDPNow Estimate for Q2 Rises to 3.3%, Beating Expectations

The Atlanta Federal Reserve’s closely watched GDPNow model raised its estimate for U.S. second-quarter economic growth to 3.3%, exceeding both the market consensus and the previous estimate of 3.0%.

China’s Inflation Remains Subdued as May CPI Misses Expectations

China’s consumer inflation remained weak in May, highlighting ongoing challenges in boosting domestic demand despite recent policy support measures.

The country’s Consumer Price Index (CPI) rose 1.2% year-over-year, matching the previous month’s pace but falling short of economists’ expectations for a 1.3% increase. On a monthly basis, consumer prices declined 0.1%, a smaller drop than the 0.2% decline forecast by analysts, following a 0.3% increase in April.

US Consumer Inflation Expectations Ease in May, Offering Relief to Fed

U.S. consumers’ one-year inflation expectations fell to 3.5% in May from 3.6% in April, according to the latest survey from the New York Federal Reserve.

German Factory Orders Fall Sharply, Raising Concerns Over Manufacturing Recovery

German factory orders fell 3.8% month-over-month in April, significantly worse than the 2.2% decline expected by economists and reversing the strong 4.5% increase recorded in March.

Japan’s Economy Expands 0.5% in First Quarter, Matching Expectations

Japan’s economy grew 0.5% quarter-over-quarter in the first quarter of 2026, matching market expectations and accelerating from the 0.3% growth recorded in the previous quarter.

Eurozone inflation accelerated in May, reinforcing concerns that underlying price pressures remain persistent despite the European Central Bank’s easing efforts. Headline CPI rose 3.2% year-over-year, matching expectations and increasing from 3.0% in April, while monthly inflation slowed sharply to 0.1% from 1.0% previously.

More importantly for policymakers, core inflation—which excludes volatile food and energy prices—climbed to 2.5% year-over-year, exceeding expectations of 2.4% and accelerating from 2.2% in April. The stronger-than-expected core reading suggests that underlying inflationary pressures remain more stubborn than anticipated.

Brazil’s inflation pressures showed signs of accelerating in May, according to the latest IPC-Fipe data. The IPC-Fipe Inflation Index rose 0.45% month-over-month, up from 0.40% in April, indicating a modest pickup in consumer price growth.

Spain’s labor market continued to improve in May, but the pace of job gains was weaker than expected. The number of unemployed people fell by 36,300, marking another month of declining unemployment, though the decrease was smaller than economists’ forecast of 56,800 and below the previous month’s decline of 62,700.

Japan’s latest 10-year government bond auction reflected rising yield pressures as investors demanded higher returns to hold long-term debt. The auction yield came in at 2.649%, up from the previous 2.540%, indicating that borrowing costs continue to trend higher.

Australia’s construction sector remained under pressure in April, although the decline in building approvals was less severe than in the previous month. Building approvals fell 3.4% month-over-month, worse than expectations for a 1.5% decline, following a sharp 10.5% drop in March.