Euro Area Unemployment at 10.1%

Eurostat data has revealed that unemployment in the euro area has fallen by a slender margin  to 10.1% in May, down from 10.2% in April, year on year the figures were more encouraging, as 11% were out of work in the corresponding month a year ago.

There was a similar pattern for the European Union (EU), as unemployment was 8.6% in May, also down by 0.1% from the previous month, and the year on year figures were also more positive as unemployment was reduced by 1%.

 Among the Member States, the lowest unemployment rates in May were recorded in the Czech Republic 4%, Malta 4.1%, and Germany 4.2%, whereas the highest unemployment rates were again found in Greece 24.1% for March this year, and despite solid economic growth in the previous four quarters, Spain reported 19.8% currently seeking a position.

In the 28 member states in the EU, in all but two of them unemployment fell, it’s a slight boost for the euro area, following the positive 0.1% inflation figures in June, as increased employment can only assist in pushing that figure higher.

So far today CET, the EUR/USD rate is currently $1.11, an average figure over the past 24 hours, the euro has risen against the greenback since the UK’s decision to leave the EU, although setbacks in the pound are likely to weigh down the euro.

Manufacturing at Six Month High Say Markit

The latest Markit Purchasing Manager’s Index (PMI) on euro area manufacturing in June has revealed a six month high in manufacturing growth, as recovery in the sector appears to be gathering momentum.

Growth in production and new orders escalated, also taking expansion rates in the second quarter of this year, higher than what was achieved in the first one, the index produced a score of 52.8, over the 50 neutral score and higher than the 51.5 that was recorded in May.

Germany and Austria were key players in the latest survey, where manufacturing accelerated at the fastest rate since February 2014 and May 2011 respectively, upturns in Italy, Spain and Ireland also gathered pace, but slowed in the Netherlands.

There was also rare positive news for Greece in the survey, as their manufacturing industry expanded for the first time in six months, and also posted a 25 month peak of 50.4 in the index.

The only nation that suffered a contraction was France, who slipped to 48.3, a two month low for the sector, leaving the gap between France and Germany in manufacturing, the widest it has been in the survey since the beginning of 2014.

France, alongside Greece and the Netherlands, all saw a reduction in export activity for June.

Overall, the manufacturing industry across the euro area has now continuously increased for the past three years, with the latest positive figures fuelled by rising levels of new business, from both domestic and export markets.

Employment in the industry also rose, extending this sequence to 22 consecutive months, although in June the rate of job expansion was the quickest so far, stronger new business growth and the fastest accumulation of backlogs of work during the year so far, were thought to be the main reasons why more vacancies were created.