Posts Tagged ‘fall’
German unemployment hits lowest level in 20 years
Official data has revealed unemployment in Germany dropped to its lowest level in more than 20 years in September.
The country’s unemployment rate fell from August’s rate of 7% to 6.6%.
Unemployment now stands at 2.79 million – the first time since 1992 that the jobless total has been below 2.8 million.
It was also much better than economists had expected.
The country’s unemployment rate continues to fall and its job market has performed much better than in many other countries and many believe it is the result of the “Kurzarbeit” scheme, introduced by the German Government, designed to prevent mass redundancies.
Last year, Germany’s unemployment rate plunged to 7.7% from 8.2% in 2009 as a result of the Government initiative.
Many economists believe that Germany’s economic recovery appears to have enough “domestic stamina” to prevent a recession.”
However, despite the strong data, the economy, which is the euro zone’s largest, continues to suffer amid the ongoing debt crisis.
Germany, which has been regarded as Europe’s powerhouse, has been driving the recovery of the euro zone but a recent slew of weak data has forced many to re-evaluate its assessment of the economy.
Statistics office Destatis recently revealed German exports fell more than expected in July.
According to Destatis, exports fell by 1.8% in July on a monthly basis compared with a 1.2% drop in June. Economists had forecast a 0.1% fall for the month.
The sharp fall in exports will be of grave concern for the country’s Government. Export demand helped to bring Germany out of recession in the second quarter of 2009 – much sooner than many of its counterparts throughout the world.
The Washington-based International Monetary Fund recently lowered its growth forecasts for both Germany and the euro zone this year and next.
It expects Germany’s economy to grow 2.7% this year and 1.3% in 2012.
German unemployment hits lowest level in 20 years
Official data has revealed unemployment in Germany dropped to its lowest level in more than 20 years in September.
The country’s unemployment rate fell from August’s rate of 7% to 6.6%.
Unemployment now stands at 2.79 million – the first time since 1992 that the jobless total has been below 2.8 million.
It was also much better than economists had expected.
The country’s unemployment rate continues to fall and its job market has performed much better than in many other countries and many believe it is the result of the “Kurzarbeit” scheme, introduced by the German Government, designed to prevent mass redundancies.
Last year, Germany’s unemployment rate plunged to 7.7% from 8.2% in 2009 as a result of the Government initiative.
Many economists believe that Germany’s economic recovery appears to have enough “domestic stamina” to prevent a recession.”
However, despite the strong data, the economy, which is the euro zone’s largest, continues to suffer amid the ongoing debt crisis.
Germany, which has been regarded as Europe’s powerhouse, has been driving the recovery of the euro zone but a recent slew of weak data has forced many to re-evaluate its assessment of the economy.
Statistics office Destatis recently revealed German exports fell more than expected in July.
According to Destatis, exports fell by 1.8% in July on a monthly basis compared with a 1.2% drop in June. Economists had forecast a 0.1% fall for the month.
The sharp fall in exports will be of grave concern for the country’s Government. Export demand helped to bring Germany out of recession in the second quarter of 2009 – much sooner than many of its counterparts throughout the world.
The Washington-based International Monetary Fund recently lowered its growth forecasts for both Germany and the euro zone this year and next.
It expects Germany’s economy to grow 2.7% this year and 1.3% in 2012.
German unemployment hits lowest level in 20 years
Official data has revealed unemployment in Germany dropped to its lowest level in more than 20 years in September.
The country’s unemployment rate fell from August’s rate of 7% to 6.6%.
Unemployment now stands at 2.79 million – the first time since 1992 that the jobless total has been below 2.8 million.
It was also much better than economists had expected.
The country’s unemployment rate continues to fall and its job market has performed much better than in many other countries and many believe it is the result of the “Kurzarbeit” scheme, introduced by the German Government, designed to prevent mass redundancies.
Last year, Germany’s unemployment rate plunged to 7.7% from 8.2% in 2009 as a result of the Government initiative.
Many economists believe that Germany’s economic recovery appears to have enough “domestic stamina” to prevent a recession.”
However, despite the strong data, the economy, which is the euro zone’s largest, continues to suffer amid the ongoing debt crisis.
Germany, which has been regarded as Europe’s powerhouse, has been driving the recovery of the euro zone but a recent slew of weak data has forced many to re-evaluate its assessment of the economy.
Statistics office Destatis recently revealed German exports fell more than expected in July.
According to Destatis, exports fell by 1.8% in July on a monthly basis compared with a 1.2% drop in June. Economists had forecast a 0.1% fall for the month.
The sharp fall in exports will be of grave concern for the country’s Government. Export demand helped to bring Germany out of recession in the second quarter of 2009 – much sooner than many of its counterparts throughout the world.
The Washington-based International Monetary Fund recently lowered its growth forecasts for both Germany and the euro zone this year and next.
It expects Germany’s economy to grow 2.7% this year and 1.3% in 2012.
Land Registry reports 0.3% fall in August house prices
According to the Land Registry, house prices fell by 0.3% in August after a 1.3% rise in July.
The latest fall takes the average cost of a home to £162,347 in England and Wales.
On an annual basis, meanwhile, the Registry said prices are 2.6% lower.
It must be noted that the Land Registry compiles its data from completed transactions and therefore lags behind other monitors of the housing market but is generally regarded as the most authoritative.
In comparison, the Halifax said house prices fell by 1.2% in August on a monthly basis, while the Nationwide said house prices fell by 0.6% in August.
Meanwhile, according to the Land Registry, the only region in England and Wales to see an increase in its average property value over the last year is London, where house prices are now 2.1% higher than this time last year.
In stark contrast, prices have fallen by 7.8% in the North East of England and by 5.5% in Wales over the same time period.
However, property in London is attractive to buyers from overseas as a result of the cheap pound.
Meanwhile, in terms of future house prices, a recent report from leading think-tank National Institute of Economic and Social Research (NIESR), predicted UK house prices will fall by 4.5% in 2011, followed by an average 1.5% fall in each of the subsequent four years.
According to the think tank, this year’s decline will reflect the squeeze on household finances resulting from higher taxes and rising inflation, and the ongoing lack of mortgage availability.
In related news this week, HM Revenue & Customs (HMRC) revealed a fall in the number of homes sold in August in the UK.
According to HMRC, 78,000 homes worth at least £40,000 or more were sold in the month – 6,000 less than the previous month and 3,000 lower than in August 2010.
However, August is traditionally regarded as a quieter month due to the holiday season.
At the height of the housing boom in July 2007, 151,000 homes were sold.
Today’s figures from the Land Registry, along with other recent reports, suggest the housing market will remain depressed throughout the remainder of the year.
Price of gold extends losses
The price of spot gold fell further today – to a 2½-month low of $1,624 – after reaching a record high of $1,920.94 a troy ounce earlier this month.
This represents the sharpest drop since March 2009 – in the aftermath of the collapse of US bank, Lehman Brothers.
Gold is now down 9% from its record high as investors no longer see the precious metal as a safe haven.
However, it is still up around 20% for the year to date.
Prices of other precious metals also fell, with silver down 5.3% to $29.39 – its lowest level for seven months.
The fall in the price of gold was attributed to strong gains by the US dollar – the two typically move in the opposite direction.
Commodities such as gold lose their appeal to investors when the dollar strengthens because those asset classes become more costly to buyers from overseas.
One analyst said the precious metal could fall to $1,582 in the short term, but is optimistic for its long-term prospects, with some expecting it to hit a high of $2,000.
According to analysts, investors are likely to monitor developments on the global economy before investing further into gold since its recent volatility makes them nervous.
Back in July, many investors said it would reach as high as $1,700 an ounce by December and at the time, the surge in the price of gold was linked to ratings agency Moody’s reviewing the US’s AAA debt rating, warning there was a growing likelihood the US will default on its debt obligations.
Furthermore, many were concerned about the ongoing debt crisis in the euro zone and this sent the US dollar tumbling and the price of gold soaring.
Investors remain concerned about the euro zone sovereign debt crisis but today shares have rallied after G20 talks at the weekend proposed an action plan for the debt-laden nation.
A report from the Washington-based International Monetary Fund (IMF) suggests that fresh action for the euro zone debt crisis is underway, which will prevent the crisis from spreading and impacting on the global economy.