Market Update May 2014
Overall global growth is around longer-term trend and further uplift is expected in Q2, for the remainder of 2014 and into 2015.
The US is showing positive signs of economic recovery, with April manufacturing rising at its fastest pace in three years and manufacturing employment increasing for its tenth consecutive month. The US also saw consumer spending up 3%, which is its largest gain in four and a half years.
In Europe Germany continues to be the standout, with France following close behind – reporting its second consecutive month of increased output. But it’s the other Eurozone countries that in the spotlight, who continued their recovery across both manufacturing and services sectors. It’s these periphery countries that have recorded their best growth rate since early 2011.
On the home front, all eyes are focused towards the release of the 13 May Budget, and what parts of the National Commission of Audit will be embraced. Overall, the Federal Government 13 May Budget is expected to be one of constrained expenditure.