National Economic News
Industrial license validity extended to three years
In yet another effort to enhance the ease of doing business in the country, the government has extended the validity period of industrial license to three years with a provision for further extension of two years. However, in the case of industrial license in defense and explosive sectors, the request has to be forwarded to the home ministry and the concerned state government, which, after seeking comments of these agencies, would consider granting the extension.
World Economic News
Eurozone Producer Price Decline Eases For Second Month As Expected
Producer prices in the euro area declined at a slower pace for the second straight month in May, in line with the expectations of economists. Industrial producer prices in the domestic market dropped 1.0% yoy in May, slower than April’s 1.2% decline. In March, prices fell 1.7%. Producer prices in the energy sector declined 2.8% annually in May, following a 3.3% drop registered in April. Prices of intermediate goods fell by 1.2%, while capital goods and consumer goods rose by 0.3% and 0.8%, respectively in May.
U.S. Factory Orders Drop 0.5% In May, More Than Expected
New orders for U.S. manufactured goods fell by more than expected in the month of May. The factory orders fell by 0.5% in May after climbing by an upwardly revised 0.8% in April. Economists had expected orders to dip by about 0.3% compared to the 0.7% increase that had been reported for the previous month. The bigger than expected drop in factory orders was partly due to a sharp pullback in orders for transportation equipment, which fell by 2.9% in May after jumping by 1.8% in April.