In the eurozone, retail sales rose unexpectedly in July, driven mainly by an increase in French and Portuguese spending which offset stalling sales in Germany, Europe’s largest economy.

Sales in the common currency region registered an increase of 0.2 per cent from June, higher than economists’ expectation of an unchanged figure.

On Thursday, the European Central Bank (ECB) left interest rates on hold at 1.5%. The bank also left the possibility open to reverse its interest-rate increases earlier this year and increase emergency liquidity measures to the euro region’s crisis-hit banks.

The ECB also downgraded its growth forecast to 1.6 per cent from 1.9 per cent this year, and to 1.3 per cent from 1.7 per cent for next year.

Inflation forecasts were left unchanged at 2.6 per cent in 2011 and 1.7 per cent in 2012.

In the UK, on a slight positive note, factory output increased by just 0.1 per cent from the previous month, when it registered a drop of 0.4 per cent. Economists were expecting the figure to remain unchanged.

Finally, as forecast, the Bank of England maintained the target of its bond purchase program at £200 billion, and the benchmark interest rate at record-low of 0.5 per cent.

The Monetary Policy Committee also resisted calls to increase economic stimulus.

Employment in the US stagnated unexpectedly in August as payrolls were unchanged. Economists were expecting a gain of 68,000 jobs. In this respect, the unemployment rate held steady at 9.1 per cent.

Ben Bernanke, chairman of the US central bank, the Federal Reserve, repeated that the Fed would explore options for further economic support at the forthcoming Federal Open Market Committee later this month.

Meanwhile, President Barack Obama pledged a $447 billion jobs package to help the economic recovery of the country.

This article was compiled by Bank of Valletta plc for general information purposes only.