UK Posts Positive Employment Figures, Pound Strengthens

In the UK, there were 176,000 more people working in the three months leading to May this year, resulting in the UK having an employment rate of 74.4%, this highest since records began in 1971.

Current unemployment levels have dipped to 1.65 million for the three month period up to May, which was 54,000 fewer than recorded for the period between November last year and February this year, this left the unemployment rate at 4.9%, down from 5.6% for a year earlier.

Average weekly earnings increased by 2.3% including bonuses, and by 2.2% excluding bonuses compared with a year earlier.

In response the pound has bounced back against the dollar, as the GBP/USD rate is currently $1.3173 up 0.56%, having progressively slid in comparison to the greenback throughout yesterday and this morning.

Sterling’s fortunes were damaged by the latest IMF forecasts, who revised their UK growth figures, which were reduced to 1.7% for 2016 from 1.9%, more significantly for next year, growth was downgraded to 1.3% from the original estimate of 2.2%, on a more positive note the IMF said that they thought the UK was a long way off from a recession.

EU Current Account Surplus Reaches 10.5 Billion Euros

The European Union (EU) recorded a balance of payments current account surplus of 10.5 billion euro in May, despite the favourable figures, the surplus was down from the 12.9 billion euros in April, while year on year, the latest figure outweighed the 9.4 billion euros that was found for May last year.

The current account covers all transactions occurring between resident and non-resident entities, refereeing to international trade in goods and services, as well as primary and secondary incomes.

In May from April this year, the excess of the goods account decreased by 11.1 billion euros, compared with 13.2 billion euros, while the deficit of the primary income account increased by 4.4 billion euros, compared with 2.7 billion euros.

The surplus of the services account grew by 10.6 billion euros, compared with 9.8 billion euros, whereas the deficit of the secondary income account fell to 6.8 billion euros, compared with a minus 7.4 billion euros.

German Producer prices in June Fall By 2.2% Year on Year

The German Federal Statistical Office has disclosed that in June this year, compared to the corresponding month last year, the index of prices for industrial products fell by 2.2%, this was a slightly better result in contrast to May, where the annual rate of producer prices had been a deeper minus score of 2.7%.

Month on month, in June the data were more positive, as prices rose by 0.4%, from May, this figures matched the producer cost increase from April to May, in April price rises were a more modest 0.1%, compared to March.

Energy prices decreased in June by 6.5% compared to May last year, prices of intermediate goods by 2%, and prices of non-durable consumer goods by 0.2%, although prices of capital goods rose by 0.6%, and prices of durable consumer goods by 1.3%.

Overall, the index not including energy fell by 0.7% compared with June 2015, and rose slightly by 0.2% compared with May this year.