- Johannes Gareis, economist at Natixis SA in Frankfurt
The 19-nation Euro area's unemployment rate was 11.0% in August 2015, unchanged from July's reading. However, the measure missed expectations, as the market forecasted a rate of 10.9%. The worst employment situation in the Euro zone was recorded in Greece, whereas Germany had the best one. The jobless rate of the EU's largest economy remained unchanged at 6.4% in the reported month. However, unemployment data revealed a surprising increase of 2,000 new unemployed in September, while analysts predicted a drop of 5,000. Meanwhile, German retail sales added to disappointment In Europe's number one economy, as private consumption unexpectedly fell in August. According to Destatis, retail turnover fell 0.4% in real terms month-on-month, well down from a 1.4% gain recorded in the previous month.
In regards to consumer prices across the Euro zone, they dropped 0.1% year-on-year in September after an increase of 0.2% in August, while markets expected to see the gauge flat in the reported month. This was the weakest number since March when consumer prices also fell by 0.1%. September's decline in consumer prices was primarily driven by a renewed drop in crude oil prices that tumbled 8.9% annually after a fall of 7.2% in August.
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