Japan’s industrial output climbed 1.7% m-o-m in April, the fifth consecutive increase, faster than a 0.9% rise in March, the Ministry of Economy and Trade said yesterday. The Markit/JMMA manufacturing Purchasing Managers Index rose to a seasonally adjusted 51.5, the highest since August, from 51.1 in April. Meanwhile, core consumer prices, which include oil, but exclude food, dropped 0.4% y-o-y in April, matching market forecasts, compared to a 0.5% y-o-y decline in March.

The OECD projected the global economy to grow 3.1% in 2013 and 4% in 2014, down from the previous forecast of 3.4% and 4.2%, respectively. The US is forecasted to expand 1.9% in 2013 and 2.8% in 2014. The Eurozone is estimated to remain in recession, with the economy shrinking 0.6% in 2013, followed by 1.1% growth next year. Germany is expected to grow 0.4% and 1.9% in 2013 and 2014, respectively. OECD urged the ECB to enforce negative deposit rates and purchase assets, such as securitized loans, from credit-depleted small and medium-sized firms. OECD took a more negative view on China, projecting its GDP to expand 7.8% this year, down from the previous estimate of 8.5%.

The International Monetary Fund (IMF) cut its 2013 economic growth forecast for China to 7.75% from the previous 8%, citing a weak global economy and sluggish export market. The IMF said the country’s priority should be on reining in social financing growth, and recommended it to carry out fiscal stimulus measures if growth falls below the IMF’s estimate.

The ECB would retain its expansive monetary policy for as long as necessary, Joerg Asmussen, Executive board member, said yesterday. Mr. Asmussen added ECB should be cautious in terms of making its deposit rate negative as it could have wider implications on banks’ own operations and bond markets.

Germany’s DIHK Chambers of Commerce cut its economic growth estimate to 0.3% for 2013 from 0.7% earlier, citing concerns that growth in exports would be less than expected. DIHK added GDP would expand by more than 1% in 2014. Separately, the Conference Board Leading Economic Index for Germany rose 1.3% in the six months to March compared to the previous six months, where it fell 2.9%.

China’s flash HSBC Purchasing Managers’ Index (PMI) fell to 49.6 in May, contracting for the first time in seven months, after a final reading of 50.4 in April. A sub-index measuring total new orders declined to 49.5, its lowest reading since September.

Japan’s exports rose 3.8% y-o-y in April, below the market estimate of 5.9% and after gaining 1.1% y-o-y in March, the Ministry of Finance reported. Imports jumped 9.4% y-o-y in April due to a rise in liquefied natural gas purchases following a revised 5.6% increase in March. The trade deficit widened to ¥879.9bn after a revised deficit of ¥364.0bn in March.

Italy’s current account balance swung to a surplus of €1.9bn in March vis-à-vis a deficit of €1.6bn during the same period last year, as per the Bank of Italy. The surplus in goods account almost doubled to €4.7bn, while the deficit in services narrowed to €429m from €836m in the previous year.

China’s new home prices jumped 4.9% y-o-y in April, the fastest gain since April 2011, after a 3.6% y-o-y increase in March, the National Bureau of Statistics (NBS) said on Saturday. New home prices in Beijing and Shanghai advanced 10.3% and 8.5%, respectively, in April. However, on m-o-m basis, new home prices were up 1% in April, easing from the 1.2% gain in March.

Japan’s core machinery orders rose 14.2% to ¥793.1bn in March, its quickest monthly rate in eight years, and ahead of the market forecast of a 2.8% gain, the Cabinet Office said today. Orders increased a revised 4.2% in February. On y-o-y basis, core orders rose 2.4% after contracting 11.3% in February. However, manufacturers expect core orders to decline 1.5% in the next quarter and 7.7% on y-o-y basis.

Japan’s economy grew 0.9% q-o-q in Q1 2013, ahead of forecasts for 0.7% growth, after a flat reading the previous quarter, the Cabinet Office revealed today. On y-o-y basis, GDP climbed 3.5% following a revised 0.2% gain in Q4 2012. However, capital spending fell 0.7% in Q1, missing forecasts of a 0.7% rise.

The Congressional Budget Office (CBO) forecasts 2013 budget deficit to be US$642bn, nearly US$200bn below its February estimate, and much lower than last year’s US$1.1-trln deficit. This year’s deficit would be 4% of GDP. Higher tax revenues and bailout mortgage repayments were cited as the main reasons for the improved outlook.

The Royal Institution of Chartered Surveyors (RICS) said its seasonally adjusted house price balance was up at +1 in April from -2 in March, coming in positive for the first time since June 2010. Also, demand for housing rose to its highest level in nearly three-and-a-half years, aided by new government schemes to boost the sector.

China’s industrial production rose 9.3% y-o-y in April, from 8.9% in March, below market expectations of a 9.5% rise, the National Bureau of Statistics said today. Separately, property investment jumped 21.2% y-o-y in the January-April period.

According to the ECB’s Survey of Professional Forecasters (SPF), the Eurozone’s GDP is likely to shrink 0.4% in 2013 versus zero growth projected three months ago. In 2014, GDP is estimated to expand 1%, below the previous forecast of 1.1%. The survey forecasts inflation to be 1.7% this year and 1.6% in 2014 compared to the previous forecast of 1.8% for both years. The unemployment rate is estimated at 12.3% in 2013, up from the previous projection of 12.1%.

Annual consumer inflation in China jumped to 2.4% in April from 2.1% in March, the National Bureau of Statistics said today. Food price inflation accelerated to 4% from 2.7% in March. On m-o-m basis, consumer prices rose 0.2% versus the forecast of 0.1%. Meanwhile, producer prices dipped 2.6% y-o-y in April, after declining 1.9% in March.

China’s exports grew 14.7% y-o-y in April, versus market expectations of a 10.3% rise, while imports rose 16.8% y-o-y, compared to an anticipated 13.9% increase, the Customs Administration announced today. Trade surplus was US$18.2bn in April. On m-o-m basis, exports rose 2.7%, while imports dipped 7.7%. HSBC’s composite Emerging Market Index (EMI) declined to 51.3 in April, its lowest in more than one and a half years and down from 52.5 in March.

The Reserve Bank of Australia (RBA) cut its benchmark interest rate to a record low of 2.75% today in an attempt to counter slowing growth in its mining sector. Softer-than-expected inflation data and signs of weakness in China are also believed to have prompted the rate cut.

After announcing the 25 basis point rate cut, the ECB said that it would provide banks with as much liquidity as necessary until at least July 2014. The central bank added that it was also ‘technically ready’ to cut its deposit rate from the current zero percent into negative territory to boost lending. Inflation would remain volatile throughout the year, but overall economic activity in the Eurozone would stabilize and recover gradually in H2 2013.

The final HSBC Purchasing Managers’ Index (PMI) fell to 50.4 in April from 51.6 in March, slightly below the flash reading of 50.5 last week. Growth in new orders eased to a five-month low, while new export orders fell to 48.4, the lowest level since last October 2012. The sub-index for employment dropped below 50 for the first time in five months.