FXTRADING Economic Data Summary (Asia-Pacific | 05/15)

UK Economic Resilience Surpasses Market Expectations

The UK economy expanded by 0.6% qoq in the first quarter, accelerating from 0.1% in the previous quarter and matching market expectations. From a structural perspective, the services sector continued to account for the majority of the UK‘s economic growth. Services output rose 0.8% qoq and 1.4% yoy, showing a clear improvement from the previous quarter’s 0.2% growth pace. .

Manufacturing output increased only 0.2% qoq, slowing notably from the previous quarters strong 1.3% expansion, though annual growth remained stable. Construction activity rose 0.4% qoq but was still down 1.3% yoy, suggesting that demand tied to real estate and infrastructure remains relatively weak. FXTRADING believes the key feature of the UK economy at present is that consumer spending within the services sector continues to show resilience despite high interest rates and political uncertainty, implying that the Bank of England may not rush to signal aggressive monetary easing in the near term.

US Retail Sales Continue to Reflect Consumer Resilience

US retail sales increased 0.5% mom in April, in line with market expectations, while core retail sales excluding autos rose 0.7%, slightly above forecasts of 0.6%. From the underlying details, US household consumption remains relatively resilient, especially in service-related spending and everyday goods purchases, with overall demand showing little sign of meaningful weakening.

More importantly, control group retail sales also increased 0.5% mom, while retail sales excluding gasoline rose 0.3%, suggesting that even as higher energy prices begin to erode some household purchasing power, overall consumer willingness to spend remains firm. From a broader trend perspective, US retail sales grew 4.4% yoy between February and April, indicating that consumer demand continues to support economic growth. FXTRADING believes that household consumption remains the biggest support for the US economy, and as long as the labor market does not deteriorate significantly, consumer resilience is unlikely to fade quickly, which could keep the Federal Reserve leaning toward a hawkish stance.

Eurozone Economy Remains Trapped in a Low-Growth Environment

Eurozone GDP expanded only 0.1% qoq in the first quarter of 2026, slowing from 0.2% in the previous quarter. Overall EU GDP rose 0.2% qoq, maintaining positive growth but still reflecting a very sluggish expansion pace. More notably, annual growth slowed sharply, with Eurozone GDP growth easing from 1.3% yoy to 0.8%, while EU-wide annual growth slowed from 1.4% to 1.0%.

High energy costs, weak industrial activity, and persistent geopolitical risks remain the core factors weighing on the European economy. Although the labor market remains relatively stable for now, signs of gradual cooling have already emerged. Eurozone employment growth slowed to 0.1% qoq in the first quarter from 0.2% previously, while annual employment growth eased from 0.7% to 0.5%. EU-wide employment growth also slowed to 0.6% yoy, close to stagnation. FXTRADING believes the biggest risk facing the Eurozone is the increasingly prolonged combination of weak growth and elevated costs, which could leave Europes economy continuing to underperform relative to the United States.

Canadian Wholesale Sales Continue Expanding

Canada‘s seasonally adjusted wholesale sales rose 1.9% mom in March to CAD 88.99 billion, above the previous estimate of 1.3%. Meanwhile, February’s figure was revised higher to 2.4% growth, indicating that overall goods demand in Canada remains relatively strong. Rising energy prices continued to play an important role in driving trade values higher. Trade involving petroleum, petroleum products, and grain-related goods increased 13.6% during the month, reaching a total value of CAD 134.92 billion.

From an industry perspective, machinery, equipment, and supplies recorded the strongest sales growth, with computer and communications equipment sales surging nearly 18%. Statistics Canada noted that the increase was mainly driven by new product launches and concentrated deliveries to government clients. At the same time, pharmaceutical and pharmacy-related product sales expanded for a fifth consecutive month, supporting continued growth in personal and household goods wholesale activity.FXTRADING believes Canadas economic structure remains heavily tied to resource sectors and equipment investment cycles, while rising energy prices and improving technology equipment demand are currently providing support for wholesale and trade activity.

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