-GfK
Germany was known for its resilience, especially extremely positive labour market conditions. Nevertheless, Germany can lose its leading position in the nearest future, as latest fundamental reports are sending worrying signs from all sectors of the economy, including the key labour market. A report from the nation's labour agency showed the seasonally adjusted unemployment increased by 24,000 in May, after a 25,000 drop a month earlier. Economists, however, expected a decline of 15,000. The overall unemployment rate remained unchanged at 6.7%, in line with analysts' projections. The agency tried to calm down investors by saying the increase in unemployment was caused by weather factors, saying the labour market conditions are still solid. European economists still believe Germany will continue gaining momentum and will be the main driver of economic growth in the region. The latest GfK consumer sentiment report showed that mood among German consumers is stable at a high level, defying some concerns that Ukrainian crisis would weigh on sentiment and overall economic performance.
Also Wednesday, European leaders kicked off a series of talks that will define the future form of the European currency bloc. These negotiations will definitely include the message expressed by the region's voters, as anti-EU and left-wing populist parties gained substantial support.
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