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Friday, a preliminary estimate from the European Union statistics office indicated that Euro area consumer prices logged zero growth in May, which was the lowest since records began in 1996, raising deflationary concerns in the economy. In the UK, a survey found that UK house prices rose unexpectedly in May to record the largest increase since October 2007.

Friday saw a number of key statistical data releases from Asian economies, especially from Japan. Japan’s unemployment rate increased to a five year high in April. But while the job picture worsened, data on factory output signaled a possible easing of the nation’s recession. Inflation also eased modestly.

Activity in the Chicago-area manufacturing sector continued to contract in the month of May, according to a report released by the Institute for Supply Management - Chicago on Friday, with the pace of contraction unexpectedly accelerating compared to the previous month.

Friday, the European Central Bank President Jean-Claude Trichet said the ECB expects to engage in a programme of buying euro-denominated covered bonds worth EUR 60 billion.

Economic activity in the first quarter contracted at a slightly slower than previously estimated pace, according to a report released by the Commerce Department on Friday, although the report also downwardly revised the pace of consumer spending growth in the quarter. The report showed that gross domestic product fell 5.7 percent in the first quarter compared to the advance estimate of a 6.1 percent decrease. Economists had been expecting the pace of contraction to be revised to 5.5 percent.

The Euro area consumer prices logged zero growth in May, which was the lowest since records began in 1996, raising deflationary concerns in the economy, a preliminary estimate from the European Union statistics office indicated Friday.

Friday, Switzerland’s KOF economic think said its economic barometer stood at minus 1.86 in May, the same reading as in April. It was the lowest level recorded since the beginning of the times series in 1991.

Italian consumer price annual inflation including tobacco eased to 0.9% in May from 1.2% in April, a preliminary report from statistical office Istat showed Friday. That was in line with the consensus forecast. On a monthly basis, the consumer price index rose 0.2%, unchanged from April.

Italian producer prices fell 4.6% year-on-year in April following a downwardly revised 4% contraction in March, statistical office Istat said Friday. Meanwhile, economists had expected producer prices to all 5.4%. On a monthly basis, the producer price index, or PPI, fell 0.4%.

UK house prices rose unexpectedly in May to record the largest increase since October 2007, a report from the Nationwide Building Society said Friday.