Key facts
- Oil prices surged due to US-Iran strikes.
- Eurozone factories saw the largest jump in input costs in four years.
- Supply chain delays in the Eurozone are at their highest since 2022.
- UK house prices fell 0.6% in May.
- Australia's Q1 GDP forecast was cut to flat.
- Australia's net trade dragged on Q1 growth due to surging imports.
- Government spending contributed nothing to Australia's Q1 growth.
- The CBI stated that businesses contributed 31% of UK tax revenues last year.
- The proportion of UK tax revenues from businesses was the highest since 1998.
- Increased social security contributions cost UK businesses £27 billion.
Global oil prices have surged in response to US-Iran strikes, leading to increased input costs for manufacturers worldwide. The Eurozone's manufacturing sector is experiencing the largest jump in input costs in four years, with supply chain disruptions reaching their highest levels since 2022. This rise in oil prices is expected to impact global manufacturing supply chains and potentially increase operational expenses for businesses.
In Australia, economic growth prospects for the first quarter of the year have been downgraded. The economy faces a sharp slowdown risk as the net trade balance negatively impacted growth. This drag was primarily caused by a significant increase in imports, including data center equipment and fuel, while government spending contributed no growth to the economy. Consequently, the current account deficit has widened, prompting Commonwealth Bank to revise its GDP forecast for the quarter to flat.
Concurrently, UK employers are advocating for a more moderate approach to business taxation. The CBI highlighted that businesses accounted for 31% of UK tax revenues in the past year, the highest proportion since 1998. CBI Chief Executive Rain Newton-Smith cautioned the government against viewing businesses as a sole source of revenue or unfairly accusing them of price-gouging. She emphasized the substantial financial burden companies face, citing the £27 billion cost associated with increased social security contributions.