EU-16 jobless rate highest for 12 years
In the eurozone, the unemployment rate in August held at 10.1%, the highest in over 12 years, since the previous month’s reading was revised from an earlier estimate of 10% to 10.1%. Flash inflation stood at 1.8% in September, slightly higher than...
In the eurozone, the unemployment rate in August held at 10.1%, the highest in over 12 years, since the previous month’s reading was revised from an earlier estimate of 10% to 10.1%.
Flash inflation stood at 1.8% in September, slightly higher than expected, increasing speculation that the European Central Bank would seek to move away from extraordinary liquidity early next year. The manufacturing sector Purchasing Managers’ Index for September was revised up to 53.7 from 53.6 earlier.
In Germany, retail sales fell for the second successive month, while the Irish government also revised up estimates of likely bailout costs for its banks, suggesting its budget deficit could rise to over 30% of GDP.
In the US, consumer confidence data was significantly weaker than expected, falling to 48.5 from 53.2 previously. This was the lowest figure since February, reflecting consumers’ pessimism over the employment outlook.
However, jobless claims later actually dropped to 453,000 in the latest week, from 469,000 previously, while second-quarter GDP growth was revised up to 1.7% from 1.6%. The Chicago Purchasing Managers’ Index rose to 60.4 in September from 56.7 in August.
Housing data was slightly weaker than expected with the Case-Shiller house price index registering a 3.2% annual increase from 4.2% the previous month.
In the UK, data was mixed, with second quarter GDP growth confirmed at 1.2% while the current account deficit was lower than expected at £7.4 billion, from a revised £11.3bn previously. In the meantime, money supply growth remained weak while there was also a drop in consumer credit for the month. Total consumer lending was stronger than expected with a reported gain from mortgage lending, despite weakness in mortgage approvals.
An index of manufacturing growth dropped to a 10-month low of 53.4 in September from a revised 53.7 in August.
Finally, an MPC member said there was a clear case for further asset purchases by the Bank of England and that inflation was likely to substantially undershoot the 2% target in the medium term. The comments revived speculation that the BoE could adopt further quantitative easing.
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