Key facts
- Euro area retail sales fell 0.4% in April.
- Euro area Q1 GDP was revised down to a 0.2% contraction.
- Ireland's GDP decline influenced the Euro area Q1 GDP revision.
- Serbia's central government budget deficit was RSD 1.7bn in April.
- Serbia's January-April budget deficit widened by 27.8% year-on-year to RSD 99.6bn.
- Serbia's January-April expenditures rose by 12.1% and revenues by 10.3%.
- Switzerland's annual inflation rate was 0.6% in May.
- Switzerland's monthly CPI rose 0.2% in May.
- Israel's industrial production decreased by 1.1% in Q1 on an annualized basis.
- Euro area services production increased by 0.2% in the latest period.
- European Union services production increased by 0.4% in the latest period.
Euro area retail sales experienced a decline of 0.4% in April, falling short of expectations and following a revised 0.8% increase in March. This downturn coincides with a downward revision of the first-quarter Gross Domestic Product (GDP) to a 0.2% contraction. The revision was significantly influenced by a substantial drop in Ireland's GDP, attributed to technical accounting corrections within its technology and pharmaceutical sectors.
In Serbia, the central government budget recorded a deficit of RSD 1.7 billion in April, a decrease from RSD 50.2 billion in the same month of the previous year. However, for the January-April period, the budget deficit widened by 27.8% year-on-year, reaching RSD 99.6 billion, which represents 0.9% of the country's GDP. This widening is a result of expenditures increasing by 12.1%, outpacing a revenue increase of 10.3%. Another report indicates the January-April deficit reached RSD 106.2 billion, undershooting the planned budget by RSD 86.5 billion.
Switzerland's annual inflation rate remained stable at 0.6% in May, mirroring the rate observed in April. The monthly Consumer Price Index (CPI) saw a 0.2% increase, which was below the forecasted 0.3%. Core annual inflation held steady at 0.3%. Factors contributing to the monthly price rise included higher costs for housing rentals, hotel stays, and fuel. The persistent strength of the Swiss franc continues to exert deflationary pressure, a key concern for the Swiss National Bank (SNB).
Israel's industrial production decreased by 1.1% on a seasonally adjusted annualized basis during the first quarter. This decline is associated with the ongoing conflict with Iran and Hezbollah, which has impacted low-tech manufacturing and extraction industries. Deteriorating labor market indicators also contributed to this trend. Despite the production dip, sales figures remained in expansionary territory, and business confidence showed improvement in April and May.
Services production across the euro area and the broader European Union experienced modest growth. The euro area saw a 0.2% increase in services production, while the European Union recorded a 0.4% rise. These figures provide an indication of the economic activity within the services sector in these regions.