Fisher Investments Reviews: Last Week in Markets—May 18 - May 22

In the US, the May flash S&P Global Manufacturing and Services Purchasing Managers’ Indexes (PMIs) were 55.3 and 50.9, respectively. Readings above 50 indicate expansion.

In the UK, April consumer inflation slowed to 0.7% m/m and 2.8% y/y, both below estimates. April core consumer inflation (which excludes energy, food, alcohol, and tobacco) slowed to 0.7% m/m and 2.5% y/y. Energy costs were a major driver in tugging down the inflation rate, but while headlines reacted, markets didn’t. For more, please see our 05/20/2026 commentary, “CPI Sheds Light on Britain’s Price ‘Cap’ Conundrum.” The May flash S&P Global Manufacturing and Services PMIs were 53.7 and 47.9, respectively. April retail sales fell 1.3% m/m and remained flat y/y. The March unemployment rate rose to 5.0%, matching consensus forecasts. In the eurozone, April consumer inflation was 1.0% m/m and 3.0% y/y, matching consensus estimates. April core consumer inflation (which excludes energy, food, alcohol, and tobacco) was 2.2% y/y. The May flash S&P Manufacturing and Services PMIs were 51.4 and 46.4, respectively, both lower than expected.

In Japan, the first estimate of Q1 2026 GDP growth was 0.5% q/q and 0.6% y/y. April consumer inflation decelerated to 0.1% m/m and 1.4% y/y. April core-core consumer inflation (excluding fresh food and energy) was 1.9% y/y. The May flash S&P Global Manufacturing and Services PMIs were 54.5 and 50.0, respectively, both lower than expected. March industrial production decreased 0.4% m/m and increased 2.4% y/y, improving upon expectations. April imports and exports rose 9.7% y/y and rose 14.8% y/y, respectively. March retail sales grew 1.4% m/m. In China, April retail sales grew 1.9% y/y, in line with consensus estimates. April industrial production increased 4.1% y/y, lower than forecasts. The April unemployment rate fell to 5.2%, slightly below consensus forecasts.

The Week Ahead

The US releases Q1 GDP figures, April durable goods orders and new home sales. Japan reports April industrial production, unemployment numbers, trade data and retail sales. China releases May PMIs.

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.