Eurozone economy gains steam with lowest unemployment in decade

Eurozone unemployment rate dropped to 9.1% in June

GDP rose by 2.1% in the second quarter of this year in the euro area compared to the same three months the year before, and 2.2% in the whole of the European Union in the second quarter compared to the same quarter the year before.

On a yearly basis, growth accelerated to 2.1 percent from 1.9 percent a quarter ago.

"The global economy has been a jumbo jet running on just one engine for the last five, six years, the USA, but now it seems there's more from the euro zone as well, with encouraging signs from Asia too", said James Knightley, chief worldwide economist at ING.

Further, the German manufacturing sector posted solid growth in July, albeit at a slightly slower rate than in June as new orders came in more slowly, a survey showed on Tuesday.

The healthier state of the bloc's economy could support European Central Bank's plans to begin a tightening of monetary policy in autumn, although headline inflation remained stable at 1.3 percent in July, below the ECB target of below but close to 2 percent. However, Greek unemployment still remains at 21.7 per cent while in Spain it remains at 17.1 per cent. UniCredit on Thursday raised its forecast for the euro-dollar rate to $1.20 for the end of the year and an "equilibrium" rate of $1.25 for end-2018, from $1.14 and $1.18 respectively before.


"Our outlook reflects several positive factors: generally supportive fiscal policies - or expectations of them - in most developed market economies, easier financial conditions since the start of the year, positive animal spirits as indicated by consumer and business confidence data, and a rebound in global trade".

"The political risk factor has been taken out", said Vasileios Gkionakis, co-head of strategy research at UniCredit.

Rob Dobson, an economist at the survey's compilers, IHS Markit, said it showed United Kingdom manufacturing - which makes up a tenth of the United Kingdom economy - had started the third quarter on a solid footing. Doubts over Donald Trump's ability to push through any sort of meaningful policy changes and a pushing back of expectations for Federal Reserve rate hikes has now seen the Dollar index relinquish nearly 9% of its value since the beginning of March alone.

More significant may prove to be average wage growth, however.

The EU jobless rate rate held steady at 7.7 percent in June.

Related News:



Most liked

Lavrov says Moscow had to react to United States sanctions
Speaking at a news conference in Finland on Thursday, Russian President Vladimir Putin derided the sanctions bill now in the U.S. It also said it was barring the U.S. embassy from using a Moscow summer house and storage facility in the city from Aug 1.

Lawmakers Adjourn 3rd Day of Special Session
Democrats for almost two months have held off on sending an evidence-based school funding bill to Republican Gov. Day 2 of the current special session produced a new metaphor, but no progress.

Beginning of good times for women's cricket in India: Mithali
Sania said Mithali Raj has been performing amazingly for many years, she is an incredible ambassador for the game of cricket. This was the second time that India made it to the finals of the tournament. "The captain is what the team is".

Indian Women's Cricket Team felicitated by the Sports Minister in New Delhi
An hour later, the women's team will be honored by the Board of Control for Cricket in India ( BCCI ) in a five-star hotel. No one knows what happens in the next four years as the next 50-over World Cup is in 2021.

E-cigarettes linked to helping people quit smoking
E-cigs possess the potential to reduce a deadly habit that is responsible for more than 480,000 deaths per year in the U.S. Here, "cessation rate" was how many people, who were smokers 12 months before the survey, quit for at least three months.

Hillary Clinton to release new book 'What Happened' about 2016 election
I wonder if she'll explain how the Russians and Comey tricked her into ignoring Wisconsin, Michigan and Pennsylvania. She said she would have won the election had it not been for the release of campaign chairman John Podesta's emails .

Dead In Alleged Human Trafficking Case
Police say they checked surveillance video, which shows vehicles had arrived and picked up other people from the tractor-trailer. McManus added that after the immigrants were treated for heat stroke and dehydration, they would then be investigated by ICE.

The Last Killer Whale Born In Captivity At SeaWorld Has Died
The last killer whale born in captivity under SeaWorld's former orca-breeding program has died at the company's San Antonio park. The water park said during the few months of Kyara's life, she touched everyone that came in contact with her.

MPs Kodikunnil Suresh, MK Raghavan suspended for 5 sittings by Speaker
The Lok Sabha got off to a stormy start in the morning with leader of the Congress' Legislative Party M. Mallikarjun Kharge demanding a discussion on widespread incidents of mob violence and murder.

The Sims 4 is Coming to Xbox One This November
However, it is still unavailable for pre-order, which created speculations that the release has been put off until a later date. The console features a 2.3GHz 8-core custom AMD CPU which will generate crisper more detailed gaming environments.

Parents accused of giving newborn baby narcotics
He then slammed into the exit doors as they closed, dropping his daughter , who was in a auto seat at the time, police said. He grabbed the vehicle seat and made a run for it again, but once again, dropped the baby when he ran into a pillar.

Eight people found dead in back of tractor trailer
A search of the surrounding area was also conducted to attempt to locate any patients that may have attempted to flee the scene. The truck remained in the Walmart parking lot until mid-morning on Sunday when it was towed away for further investigation.

Taliban take control of another district in Afghanistan
The Taliban has not yet claimed responsibility for the kidnappings. The remaining 33 are still being held by insurgents. Mewanwhile, in northern Badakhshan province Gov.

Severino, Gardner lead Yankees to 4-1 win over Mariners
Yankees: Masahiro Tanaka (7-9) has won two of his last four starts after a miserable stretch with six losses in eight outings. The ball ricocheted to second baseman Starlin Castro, who threw back to Headley for what could have been an inning-ending out.

Aircraft carrier will scare enemies
Terry McAuliffe of Virginia and Rick Snyder of MI , who were packed into the steamy hangar bay on the main deck. CVN 78 is named after the 38th President of the USA and pays homage to his lifetime of service in the navy.