New Zealand's retail sales excluding inflation rose by 0.5% quarter-on-quarter in the second quarter of 2025, surpassing the forecasted decline of 0.3% and the previous increase of 0.8%. Year-on-year retail sales increased by 2.3%, up from 0.7% previously. This unexpected growth suggests that lower interest rates are encouraging household spending and supporting an economic recovery, despite the economy contracting by 0.1% in the same quarter according to ANZ Bank. In Europe, Germany's Ifo Business Climate Index for August rose to 89.0, exceeding both the forecast of 88.8 and the previous figure of 88.6, indicating improved business morale. However, the current assessment slightly declined to 86.4 from 86.5, while expectations rose to 91.6. Spain's Producer Price Index (PPI) increased by 0.8% month-on-month in July, down from 3.2% previously, and rose 0.3% year-on-year, compared to 0.8% previously. Sweden's PPI rose 1.1% month-on-month in July, recovering from a 0.6% decline, while the year-on-year PPI fell by 0.6%, an improvement from the previous 3.1% drop. France's consumer confidence index for August fell to 87, below the expected 89 and the previous 89, indicating a slight decline in household sentiment. In the UK, the British Retail Consortium (BRC) Shop Price Index rose 0.9% year-on-year in August, the largest increase since March 2024, driven by rising food prices amid bad weather and poor harvests, raising inflation concerns for the Bank of England. Japan's services Producer Price Index rose 2.9% year-on-year in July, below the expected 3.2%, while core inflation excluding fuel and fresh food has surpassed that of the US for the first time in 48 years. Hong Kong's imports and exports grew 16.5% and 14.3% year-on-year respectively in July, both exceeding forecasts, but the trade balance showed a deficit of HKD 34.1 billion, wider than the estimated deficit of HKD 24.7 billion but narrower than the previous deficit of HKD 58.9 billion.
#France Consumer Confidence Aug: 87 (est 89; prev 89; prevR 88) #Sweden PPI (M/M) Jul: 1.1% (prev -0.6%) - PPI (Y/Y): -0.6% (PREV -3.1%)
Core Japanese inflation, excluding fuel and fresh food, is now higher than in the US for the first time in 48 years — excluding two one-year periods when the figures were distorted by a sales tax hike (BBG) https://t.co/IuQ2fgmpmX
Hong Kong Exports (Y/Y) Jul: 14.3% (est 11.3%; prev 11.9%) - Imports (Y/Y): 16.5% (est 12.2%; prev 11.1%) - Trade Balance (HKD): -34.1B (est -24.7B; prev -58.9B)