Dear Reader,

Today's overview of economic news and market action:

• Positive tone to investor sentiment continued yesterday …
• US rate hike expectations softened slightly post CPI data …
• In contrast, UK rate hike expectations hardened significantly post UK labour data …
• Firmer UK rates supported sterling, which rose by circa 0.6% ….
• Sees EUR/GBP open back at the midpoint of 85-86p …
• GBP/USD is operating north of $1.26 also …
• EUR/USD remains in the top half of $1.07-1.08 …
• US Fed expected to leave rates unchanged later today …

Continuing Strong Growth Despite GDP Hiccup

The scale of Irish contract manufacturing, whereby a company based in Ireland engages a firm abroad to manufacture products on its behalf, has grown enormously since 2015. The production process is still recorded in the Irish National Accounts as part of imports, exports and GDP, even though none of the activity occurs in Ireland.

The Full Picture

The scale of Irish contract manufacturing, whereby a company based in Ireland engages a firm abroad to manufacture products on its behalf, has grown enormously since 2015.

Growth in services activity remains marked

Ongoing demand strength continued to support sustained growth in the Irish service sector during May, according to the latest AIB PMI® survey data. Activity and new business both rose sharply, albeit at rates slightly weaker than seen in April, and business sentiment strengthened on the month.