Daily Economic Outlook: 24th June, 2015

A further extraordinary Eurogroup meeting focused on Greece starting at 6pm UK time is likely to dominate news flow into the evening in advance of a scheduled EU summit starting on Thursday afternoon.  Amid heightened optimism of a possible agreement, any deal would still need the approval of Greek - in the first instance - and German lawmakers in advance of the end-month bailout expiry deadline.

In the interim, the key economic release of the morning will come from June's readings of the bellwether German IFO survey. Following the softer prints already seen in the ZEW survey for June, expectations are for a further modest dip, with a reading of 108.1 anticipated for the overall index, says Lloyds Bank.  

Nevertheless, following the surprise strength of yesterday's 'flash' PMI data, some risk of an improved tone remains. The sole domestic interest, meanwhile, will come from the BBA's mortgage approvals data providing a partial read of market activity in May, with comprehensive Bank of England figures is sechedule to release next week, notes Lloyds Bank.

Revised US GDP data for Q1 may also provide further colour on the extent to which the apparent US weakness in Q1 is purely an issue of measurement. Lloyds Bank anticipates a modest upward revision to a flat reading on the quarter overall, just ahead of the consensus, largely reflecting upward revisions to retail sales data that suggest that consumer spending in Q1 was stronger than initially estimated. Notwithstanding this, an impression of a soft patch in Q1 is likely to remain intact.