Morning Economic Report 5-22-25

Economy update

Business activity in the euro zone took an unforeseen U-turn. Its index, compiled by S&P Global slipped to 49.5, down from 50.4 in April. On the brightish side, German business sentiment improved in May, the latest Ifo survey shows. US equity and bond investors are cautious ahead of the vote in the House of Repersentatives on President Trump’s tax and spending legislation. G7 finance ministers meet in Canada to discuss the course of action on non-tariff issues. Stocks and bonds are under pressure, but the dollar is trying to recover.