Further signs of economic stabilisation

The recent positive bout of economic data is expected to keep flowing through to next week. Although most economic indicators are still languishing in recession territory, the pace of decline has eased, raising hopes of a possible recovery.

Economic data from the US should reconfirm that the world's largest economy looks closer to recovery than other major economies. Trade balance figures will open the week's schedule and are expected to show a further widening trade gap. This trend is likely to linger in the coming months as the US economy ups its imports on the back of increased consumer confidence, while exports dwindle as global economies continue to struggle.

Advanced retail sales figures for April will hit the wires midway through the week. They are expected to come in flat at zero per cent, after a 1.1 per cent drop in March.

Inflationary data will flow through later on this week with both producers' and consumers' prices expected to signal further easing of pricing pressures.

Industrial production will wrap up the week with an expected 0.5% drop, compared to the 1.5% drop in March.

Industrial production figures will also feature in the economic schedule for both the eurozone and the UK. The drop registered in the eurozone in February is expected to have halved in March, while the rate of decline in the UK's industrial economy is forecast to have slowed to 0.7 per cent from a negative one per cent.

Gross Domestic Product (GDP) figures for the eurozone will be issued on Friday where a year-on-year drop of 4.1% for the first quarter of 2009 is expected.

Meanwhile, GDP expectations will be released in the Bank of England's quarterly report on Wednesday. On the same day, some employment figures will also be released, including the unemployment rate, which is expected to have surged to 6.9% from February's 6.7%.

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