There was quite a dispersion of economic data surprises around the world through May. Europe was the positive standout, with evidence of ongoing improvement in economic growth. Japan’s economic data deteriorated sharply at least until right at the end of the month when retail sales beat expectations. However, generally through the month Japan saw disappointing growth data. The US economy lost some momentum too. The economy is still growing at a relatively good clip, but it appears that consumers are feeling the pinch from high inflation taking away spending power.
