Unemployment in the eurozone is neither improving nor getting worse, despite hopes that the latest figures would show a further drop in the jobless rate.The unemployment rate stayed at 11.1 per cent in June from the same level the previous month. Economists had been expecting a small decrease in the rate to 11 per cent. The lowest unemployment rate in the bloc in June was recorded in Germany (4.7 per cent) and the Czech Republic is also faring well (4.9 per cent).
At the other end of the scale is Greece, where unemployment remained 25.6 per cent in April. Despite improving GDP growth in Spain, the country's unemployment rate is also still well in the double digits, at 22.5 per cent. Italy's unemployment rate moved up to 12.7 per cent in June from 12.5 per cent in May, youth joblessness increased to 44.2 per cent, its highest level since 1977 and roughly twice the eurozone average, showing that high-school and university-aged Italians are still desperately struggling to find employment.
Inflation in the 19-nation Eurozone was unchanged in July while the jobless rate for June was also flat, suggesting the economy maintained only modest growth. Consumer prices rose 0.2 per cent in July, the same rate as the previous month and in line with analysts' forecasts.
U.S. labour costs in the second quarter recorded their smallest increase in 33 years amid tepid gains in the private sector, but it likely was a temporary setback against the backdrop of diminishing labour market slack.
The Employment Cost Index edged up 0.2 percent, the Labour Department said on Friday. That was the smallest gain since the series started in the second quarter of 1982 Economists had forecast the employment cost index rising 0.6 percent.
At 5.3 percent, the unemployment rate is close to the 5.0 percent to 5.2 percent range that most Federal Reserve officials consider consistent with full employment. The Labour cost index is viewed by policymakers and economists as one of the better measures of labour market slack. It is also considered a better predictor of core inflation.
09:30- GBP: UK Markit Manufacturing PMI (July) Expected to increase to 51.6 from 51.4
09:30- USD: US Markit Manufacturing PMI (July) expected to remain unchanged at 53.5