German industrial production fell unexpectedly for the first time this year in June. Production output declined by 1.1 per cent in June from 1.2 per cent in May. However, production in factories and construction companies was 1.8 per cent higher in the second quarter after rising 1.2 per cent in the first quarter. Industrial production rose overall in the second quarter of 2017. Economists had expected a rise of 0.1 per cent month on month and 3.7 per cent year on year. The German economy is likely to continue its strong growth momentum in the coming quarters of this year on the back of robust industrial production, Jack Allen, an economist at Capital Economics, said.

In the meantime, Greece’s jobless rate fell for the fifth consecutive month in May. The unemployment rate declined slightly to 21.7 per cent from an upwardly revised rate of 21.8 per cent in April. The latest figure was the lowest since January 2012, when the rate was 21.4 per cent. The number of unemployed people totalled 1.04 million in May. Among young people aged between 15 and 24, the unemployment rate fell to 44.4 per cent in May from 49.7 per cent in April 2016. However, Greece still has the highest unemployment rate in the eurozone. Unemployment in the eurozone fell from the downwardly revised 9.2 per cent in May to 9.1 per cent in June. This was the lowest figure since February 2009.

Finally, in the United States, producer prices slipped in July, marking the biggest decline in almost a year and heading to a further moderation in inflation, which may delay a rise in interest rates. The Labour Department said that producer price index (PPI) for final demand dipped 0.1 per cent in July, which was affected negatively by decreasing costs for services and energy products. This was below forecasts of a 0.1 per cent monthly increase and following a 0.1 per cent rise in June. July’s drop in PPI was the biggest decline since August 2016. Year-on-year PPI declined to 1.9 per cent in July after rising to two per cent in the year through June and against forecasts of an uptick to 2.2 per cent.

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