The broad-based major European indices closed lower in Friday trading as technology, automotive, and industrial stocks weighed down the markets.
In economic news, the consumer prices index (CPI) rose 0.1% in France in May over a month, after rising 0.3% in April, according to the Institute for Statistics and Economic Studies (INSEE). The slowdown came from a downturn in services prices, while food prices sharply accelerated. Those of manufactured product and tobacco increased more than in the previous month.
Seasonally adjusted, consumer prices declined 0.1% over a month, after rising 0.3% in April. Year on year, consumer prices slowed down in May to +0.9% after registering +1.3% in April. INSEE said the drop in inflation resulted from a “lesser dynamism in the prices of services, energy and food, and a more pronounced drop in those of manufactured product.” Only tobacco prices accelerated, rising 9.1% in May after climbing 8.1% the previous month. Year on year, core inflation fell to +0.5%, after +0.7% in April. The Harmonised Index of Consumer Prices (HICP) slowed down, over a month, to +0.1% in May, after +0.4% in April, and year on year it grew 1.1%, after rising 1.5% in the previous month.
INSEE also reported that the number of business births for all enterprises rose slightly in May, increasing 0.2% after falling 1.7% in April, seasonally and working-day adjusted. Conventional businesses start-ups picked up, rising 0.4% after declining 2.0% the previous month, and micro-entrepreneurs’ registrations are nearly unchanged, declining 0.1% after falling 1.4% the month before.
In Germany, the Federal Statistical Office (Destatis) reported that the selling prices in wholesale trade increased 1.6% in May from the same month last year. In April and March the annual rates of change had been +2.1% and +1.8%, respectively, while from April to May the index rose 0.3%.