The number of Americans applying for unemployment benefit for the first time fell to its lowest level in almost six years.
The advance figure of seasonally adjusted initial claims for jobless benefits fell by 15,000 to 320,000, the lowest since October 2007, from a revised figure of 335,000, which indicates a sustained recovery in employment.
Meanwhile, in the UK, the unemployment rate remained at 7.8 per cent in the second quarter.
Retail sales in the country jumped more than expected by 1.1 per cent in July from the previous month.
On the other hand, July’s fall in annual Consumer Price Index inflation from 2.9 per cent to 2.8 per cent is likely to lead the start of a sustained drop. Particularly encouraging was that the core rate dropped from 2.3 per cent to two per cent, pushed up temporarily by a rebound in clothing inflation and a jump in air fares.
UK house price gauge in July rose to the highest level in almost seven years as government measures to stimulate the property market boosted demand. The index rose to 36 from 21 in June, the highest reading since November 2006.
Europe’s two largest economies expanded more than economists expected in the second quarter, helping to pull the euro area out of its longest ever recession.
As German GDP rose 0.7 per cent from the first quarter, the French economy grew 0.5 per cent, posting its best quarterly expansion in over a year.
Meanwhile, Portugal’s economy expanded in the second quarter for the first time since 2010 as export growth accelerated. GDP rose 1.1 per cent quarter on quarter, following 10 consecutive quarters of contraction.
Finally, even Greek GDP figures suggest the economy may have contracted less in Q2 following the recent period of relative calm and stability.
Moreover, June’s eurozone industrial production data further confirmed this positive momentum. Although the 0.7 per cent monthly rise in eurozone industrial production in June was a less than the consensus forecast of a one per cent increase, it more than reversed the previous month’s fall and was the fifth gain in seven months.
This article was compiled by Bank of Valletta for general information purposes only.