ROUNDUP: Inflation in the euro zone falls from record high to 10 percent
LUXEMBOURG – Eurozone inflation eased slightly from record levels in November. Consumer prices increased by 10.0 percent compared to the same month last year, as reported by the Eurostat statistics office in Luxembourg on Wednesday. In October, inflation had reached an all-time high of 10.6 percent. Analysts had expected a decline, but only to 10.4 percent. However, experts did not want to rule out a renewed increase in the inflation rate in the coming months.
US: Pending home sales fall less than expected
WASHINGTON – In the US, the number of pending home sales has fallen for the fifth straight month. Pending home sales fell 4.6 percent month-on-month in October, the National Association of Realtors (Nar) said on Wednesday in Washington. Economists had expected a sharper decline of 5.3 percent on average.
Inflation and economic slowdown: Real wages have fallen worldwide
GENEVA – For the first time since 2008, real wages have fallen worldwide, according to an analysis by the UN World Labor Organization (ILO). Reasons are the high inflation and the economic downturn, which are partly due to the Russian war against Ukraine and the energy crisis, the ILO reported on Wednesday in Geneva. In 2008 she reported on the development of real wages for the first time.
ROUNDUP: US economy grows faster than expected in summer
WASHINGTON – The US economy grew faster than expected in the summer. Gross domestic product (GDP) increased by 2.9 percent on an annualized basis in the third quarter, according to a second estimate announced by the Department of Commerce in Washington on Wednesday. In a first estimate, growth of 2.6 percent was determined. Economists had expected an average revision of 2.8 percent. In the second quarter, economic output had shrunk by 0.6 percent.
Dekabank chief economist is confident about the coming year
FRANKFURT – Dekabank is quite confident about the coming year. “The recession will be less severe than expected and inflation should be past its peak,” said Dekabank chief economist Ulrich Kater on Wednesday in Frankfurt. For Germany, Kater expects a decline in gross domestic product (GDP) of 0.7 percent in 2023. But the economy should pick up speed again from the middle of next year. However, since the outlook has been particularly uncertain, also in view of the Ukraine war.
US: Private sector employment rises much weaker than expected – ADP
WASHINGTON – The US private sector added fewer jobs than expected in November. Compared to the previous month, 127,000 jobs were added, as the employment service provider ADP announced on Wednesday in Washington. This is the weakest increase in almost two years. Analysts had expected an average of 200,000 new jobs. In October, 239,000 new jobs had been found.
Italy: Inflation moderates somewhat
ROME – In Italy, inflation moderated somewhat in November from high levels. The consumer prices (HICP) determined according to European standards rose by 12.5 percent year-on-year in November, according to an initial estimate by the Istat statistics office in Rome on Wednesday. This means that inflation is slightly lower than in October, when it reached 12.6 percent, its highest level since the introduction of the euro.
Number of unemployed falls only slightly in November
NUREMBERG – The number of unemployed in Germany fell in November, as is usual for the season – albeit less sharply than in previous years. The Federal Employment Agency on Wednesday put the number of unemployed in November at 2.434 million, which is 8,000 fewer than in October but 117,000 more than a year ago. The unemployment rate is unchanged at 5.3 percent.
France’s economy grows more slowly in the summer
PARIS – The French economy grew more slowly in the summer months. Gross domestic product (GDP) rose by 0.2 percent in the third quarter compared to the previous quarter, according to a second estimate from the Insee statistics office on Wednesday. The result of the first survey was confirmed. In the second quarter, growth was still 0.5 percent.
China’s Economic Activity Shrinks – Weak Purchasing Managers Indices
BEIJING – Sentiment in China’s economy continued to deteriorate in November. In view of the record number of corona cases with lockdowns and the recent protests against them, economic activity remains on a contraction course. The official Purchasing Managers’ Indices (PMI) for services and for industry came in worse than expected in November. The mood barometer for the industry fell from 49.2 points in the previous month to just 48 points, as the statistics office in Beijing announced on Wednesday. This is the weakest reading since April. Analysts had expected 49 points.
France: Inflation remains at 7.1 percent
PARIS – In France, inflation remained stable at a high level in November. The consumer prices (HICP) determined according to European standards were 7.1 percent higher than a year earlier, according to an initial estimate by the Insee statistics office in Paris on Wednesday. In October, the inflation rate was also 7.1 percent. Analysts had expected inflation to fall slightly to 7.0 percent.
Bank of England: Brexit with consequences for the labor market and inflation
LONDON – The British central bank has acknowledged that Brexit will have far-reaching consequences for the UK job market and inflation. Britain’s exit from the EU has reduced trade between the UK and the EU, which in turn has impacted jobs, productivity and prices, Bank of England chief economist Huw Pill said on Wednesday.
Customer note:
ROUNDUP: You are reading a summary in the business cycle overview. There are several reports on the dpa-AFX news service on this subject.
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