Yesterday the UK unemployment rate fell to 6.5% yesterday another positive sign that the Job market is improving.
The number of people out of work is fell by 121,000 in the three months to May as well as the claimant count falling by 36,300 in June. The employment rate has equalled its record high, of 73.1%, last set in the first quarter of 2005.
With the earnings figures are even worse, showing that real wages are still shrinking. Average weekly earnings excluding bonuses rose by just 0.7% annually in the three months to May. That is the slowest rate since the Office for National Statistics started measuring 13 years ago.
With quarterly inflation currently at around 1.6% essentially real wages shrank by about 0.9%.
The main focus in the US yesterday was industrial production data. This missed forecasts and only grew by 0.2% in June, economists had expected growth of 0.4%.
Mortgage applications also fell significantly from the previous month showing -3.6% drop compared with growth of 1.6% the previous month.
Yesterday Janet Yellen pushed back against Republicans proposal to require the central bank to adopt a formal, mathematical rule to guide interest rate decisions.She told the House Financial Services Committee “It would be a grave mistake for the Fed to commit to conduct monetary policy according to a mathematical rule,"
Essentially Yellen was forced to defend the Feds decision to continue keeping interest rates at record lows.
All the focus is on the Eurozone Inflation data, which is expected to be up slightly from 0.7% to 0.8%.
10:00 BST- EUR- CPI Inflation is expected higher at 0.8%
13:30 BST-USD- Initial jobless claims expected to be higher at 310K
*BST Denotes British Summer Time
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