EUR
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).

EUR
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.

USD
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.

 

Key
Announcements:

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