Euro Area PPI Eases; IMF Grants $225 Million in Aid to Iceland

Arthi Gupta
06 Jun, 2011
New York City

The IMF granted $225 million aid to Iceland. Euro area investor confidence weakened in June and producer price inflation eased in April. Spanish industrial production declined and Czech industrial production slowed in April. Net wages in Romania rose in April.

[R]1:00 PM Frankfurt – The IMF granted $225 million aid to Iceland. Euro area investor confidence weakened in June and producer price inflation eased in April. Spanish industrial production declined and Czech industrial production slowed in April. Net wages in Romania rose in April.[/R]

IMF Grants Aid to Iceland

The International Monetary Fund approved $224.58 million loan to Iceland under a program supported by a Stand-By Arrangement. This fifth review of economic performance will bring total disbursements to around $1.8 billion.

The Washington-based lender said Iceland has made “impressive progress” in implementing program policies, especially regarding public finances and stabilizing the exchange rate.

Euro Area Confidence Weakens, PPI Eases

Investor confidence in the euro-zone declined for the third consecutive month in June, according to a survey.

The Sentix investor sentiment index, an indicator of confidence around 900 investors, decreased more than estimated to 3.5 in June from 10.9 points in May.

The current conditions index dropped to 18.5 in June, from 23.75 points in May. The expectations index fell to minus 10.5 in June from minus 1.25 points in May.

In another report, euro area producer price inflation eased slightly in April, data from Eurostat showed today.

The total industry producer prices on the domestic market excluding construction rose 6.7% annually in April, slower than March''s revised 6.8% increase.

On a monthly basis, producer prices rose 0.9% in April.

In EU27, producer price inflation rose to 7.8% in April from upwardly revised 7.5% in March. The monthly increase was 1% in April compared to a revised 1.2% in March.

Spain Industrial Production Declines

Spanish industrial production declined unexpectedly in April, data from the statistics office INE showed.

Industrial production fell by a calendar adjusted 1.6% annually in April, faster than the revised 0.4% fall in March.

Consumer goods production fell 3.3% and durable goods output dropped at a slower pace 11.4%.

Czech Industrial Output Growth Slows

Industrial production in the Czech Republic increased 4.7% on an annual basis in April compared to the 9.2% rise in March, which was revised down from 9.5%., data released by the Czech Statistics Office showed on Monday.

Mining and quarrying production rose 4.1%, while output in the manufacturing industry grew 6.1% in April.

On a monthly basis industrial production increased a seasonally adjusted 0.3% in April.

Czech Surplus Narrows, Construction Output Drops

Czech trade surplus narrowed to CZK 12.6 billion in April from March''s CZK 21.3 billion, data from the Czech statistics office showed. The amount was CZK 1.5 billion less than a year earlier.

The trade balance with European Union member states showed a surplus of CZK 56.2 billion, which was CZK 7.6 higher than last year. The trade gap with non-EU countries widened by CZK 9.1 billion to CZK 43.6 billion.

Separately, construction in the Czech Republic dropped 6% on an annual basis in April, reversing the revised 5.8% growth recorded in March, data released by the Czech Statistics Office showed.

Output in building construction dropped 2.3% annually, while civil engineering construction fell 13.7%.

On a monthly basis, production declined a seasonally adjusted 2.8% in April.

Romania Net Wages Up

Net wages in Romania increased 4.3% annually to RON 1,498 in April, data from the National Institute of Statistics showed on Monday. This was 0.3% higher than a month ago.

The statistics report cited payment of bonuses during Easter as the main reason for the increase.

Swiss Dwelling Permits Increase

The number of dwellings with planning permission in Switzerland rose 2% annually to 13,720 units during the first quarter, the Federal Statistics Office said.

The number of new dwellings built in the first quarter rose 4.5% from a year earlier to 8,800.