Fisher Investments Reviews: Last Week in Markets—June 2 - June 6

In the US, the May final S&P Global Manufacturing and Services Purchasing Managers’ Indexes (PMIs) were 52.0 and 53.7, respectively—both higher than April’s readings, PMI readings above 50 indicate expansion. May nonfarm payrolls increased by 139,000, exceeding expectations. The unemployment rate held steady at 4.2% in May, matching consensus forecasts.

In the UK, the May final S&P Global Manufacturing and Services PMIs were 46.4 and 50.9, respectively, both higher than expected. April money supply (M4) was flat m/m, less than forecasts.  In April, a new payroll tax hike took effect amid widespread concerns over how it may impact business. We believe May’s PMI data suggest UK companies are doing much better than feared. For more, please see our 6/4/2025 commentary, “Britain’s Payroll Tax Blues Start Meeting the Data.” In the eurozone, the May final PMIs were 49.4 and 49.7, respectively. The unemployment rate edged down to 6.2% in April, matching consensus forecasts. April retail sales grew 0.1% m/m and 2.3% y/y, higher than consensus estimates. The third estimate of Q1 2025 GDP confirmed 0.6% q/q and 1.5% y/y growth.

In Japan, the May final Jibun Bank Manufacturing and Services PMIs were 49.4 and 51.0, respectively, both higher than expected. In China, the May Caixin Manufacturing and Services PMIs—which include smaller businesses—were 48.3 and 51.1, respectively.

The Week Ahead:

The US releases May inflation data. Japan announces its second estimate of Q1 2025 GDP. The UK, eurozone, and Japan report industrial production figures. The UK, eurozone and China post trade data.

Source for all data cited is FactSet. This update constitutes the general views of Fisher Investments and should not be regarded as personalized investment advice. No assurances are made we will continue to hold these views, which may change at any time based on new information, analysis or reconsideration. In addition, no assurances are made regarding the accuracy of any forecast made herein. Global equities are represented by the MSCI World Index. The MSCI World Index measures the performance of selected stocks in 23 developed countries and is presented net of dividend withholding taxes and uses the maximum rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. Past performance is no guarantee of future results. A risk of loss is involved with investments in stock markets.