In the Eurozone, unemployment in November rose by 102,000, or 10% of the workforce, to reach an 11-year high. However, German unemployment in December fell by 3,000, which was more than expected.
The EU's statistics agency confirmed its earlier estimate that the Eurozone exited recession in the third quarter with 0.4% growth, after five quarters of falling output. Meanwhile, the Eurozone's industrial and factory orders for October disappointingly dropped by 1%.
In the US, employers unexpectedly cut 85,000 jobs in December, cooling optimism on the labour market's recovery. The unemployment rate in remained unchanged at 10%. By contrast, revised November payrolls showed that rather than 11,000 jobs being lost, 4,000 were actually created.
The Purchasing Managers' Index (PMI) reading for manufacturing in December was stronger than expected, increasing to 55.9 from its prior 53.6. This is its highest level since June 2006. The services sector data for December rose to 50.1 from 48.7 the previous month.
In the UK, the manufacturing PMI rose to a 25-month high of 54.1 from 51.8 in November, providing some optimism on early-2010 prospects. The reading for the services sector edged higher to 56.8 in December from 56.6 previously.
The Bank of England last Thursday committed to one more month of asset purchase under its £200 billion quantitative easing policy and kept interest rates at a record low of 0.5%. The bank had previously indicated that the big decision on the future of its asset-buying programme would take place next month.
This article has been prepared by Bank of Valletta plc, which is licensed to conduct investment services business by the MFSA, for your general information only. This information is not a solicitation or offer by the bank to acquire or sell securities. Nor does it constitute any form of advice by the bank. Appropriate advice should be obtained before making any such decision. Past performance is not necessarily a guide to future performance and the value of your investments may fall or rise.