Friday, 16 November 2012

Euro area in recession, US jobless claims surge

For a second consecutive day, both Europe and the US released negative data on Thursday.

The euro area fell into recession after real gross domestic product fell 0.1 percent in the third quarter following a 0.2 percent decline in the previous quarter. Germany and France grew 0.2 percent but Italy contracted 0.2 percent and Spain contracted 0.3 percent.

Another report on Thursday showed that eurozone inflation slowed to 2.5 percent in October from 2.6 percent in September.

In the UK, retail sales fell 0.8 percent in October, more than reversing a 0.5 percent increase in September.

In the US, a report on Thursday showed that superstorm Sandy drove initial claims for jobless benefits up by 78,000 to 439,000 in the week ended 10 November, the most since April 2011.

Factory production in the northeast was also hit. The Philadelphia Fed’s economic index fell to minus 10.7 in November from 5.7 in October. The Federal Reserve Bank of New York’s general economic index indicated continuing contraction despite rising to minus 5.2 this month from minus 6.2 in October.

Another report on Thursday showed that the US consumer price index rose 0.1 percent in October.

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