Figures issued by Eurostat showed that the unemployment rate in the eurozone fell in April to its lowest level since March 2009. The eurozone’s seasonally adjusted unemployment rate fell to 9.3 per cent from 9.4 per cent in March and 10.2 per cent in April 2016.
In the EU the unemployment rate declined to 7.8 per cent in April from 7.9 per cent in March and 8.7 per cent in April 2016. The number of unemployed people fell by 233,000 in the eurozone and 253,000 in the EU.
The lowest unemployment rates were recorded in the Czech Republic, Germany and Malta. The highest rates were recorded in Greece and Spain. However there were signs of improvement from Spain, which registered one of the highest declines on an annual basis.
Meanwhile, data published by the German statistics agency Destatis showed that Germany’s consumer price inflation slowed more than expected in May. The consumer price index increased to 1.5 per cent yearly after a two per cent gain in April and against a forecast of 1.6 per cent.
The reading was the lowest since November, when it was 0.8 per cent and below the ECB’s price stability target of just below two per cent.
Energy price inflation declined from 5.1 per cent to two per cent, while food inflation rose from 1.8 per cent to 2.4 per cent. The harmonised index of consumer prices (HICP) increased to 1.4 per cent annually in May following a two per cent increase in April, and the lowest since November, when it was 0.7 per cent. Economists had anticipated an increase of 1.5 per cent.
Finally, in the US, personal income and personal spending both improved as expected for the month of April according to a report published by the US Commerce Department. The report said consumer spending climbed by 0.4 per cent in April after a 0.3 per cent rise in March. It was the highest increase since December 2016.
Additionally, personal income rose by 0.4 per cent, double the 0.2 per cent increase in March. During the first quarter of 2017, consumer spending grew at the lowest rate in seven years.
Consumer spending accounts for 70 per cent of the US economy and a slowdown earlier in the year resulted in the GDP expanding by just 1.2 per cent in the first quarter.
This report was compiled by Bank of Valletta for general information purposes only.