Eurozone inflation at 13-year low, unemployment highest for a decade

The eurozone's most significant data was released on Friday, as figures relating to inflation and unemployment were released.

European consumer prices last month experienced their greatest fall in at least 13 years after energy costs declined. Prices in the eurozone dropped 0.6 per cent compare to a year ago, the steepest drop since the data was first compiled in 1996.

Meanwhile, unemployment rose to a 10-year high at 9.4% in June, while May figures were lowered to 9.3%.

Improving economic data was evident in the UK, as the property market took a breather after registering a rise in the number of mortgage approvals for house purchases. According to Nationwide Building Society, house prices in June increased for the third month in succession.

Retail sales figures provided further support to the British economy as stronger-than-expected data was registered for June.

The US economy had by far the busiest schedule over the past week with an inundation of housing data at the start and a surprising Gross Domestic Product figure wrapping up the week on Friday.

Existing home sales in the US recorded a slightly larger than expected monthly increase for June, as purchases climbed 3.6%. This was the third consecutive month that gains were registered. House price data also recorded a 0.9% monthly increase during May.

At the close of the week, GDP data released showed that the US economy contracted by one per cent in the second quarter, much less than the market prediction of 1.5%.

Despite the fact that GDP fell less than expected, investors focused on the consumer spending component, which showed a 1.2% drop after a 0.6% rise in the previous quarter.

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