- Peter Foley, an economist at Credit Suisse
Euro zone economic sentiment improved in December, as the jobless rate continued to decline. The European Commission survey showed that economic sentiment rose to 106.8 points last month, up from 106.1 points a month earlier. The Euro area's jobless rate dropped to the lowest level in four years in November, coming in at 10.5% down from 10.6% in October and compared with 11.5% in November 2015. The unemployment in a wider European Union was 9.1% in November, down from 9.2% in October. That was the lowest rate since July 2009. Among the member states, the lowest unemployment rates in November were recorded in Germany (4.5%), the Czech Republic (4.6%) and Malta (5.1%), and the highest in Greece (24.6% in September 2015) and Spain (21.4%). A separate report showed Euro zone retail sales unexpectedly decreased in November for a third consecutive month. Sales at European retailers contracted 0.3% in the reported month, compared with a downwardly revised 0.2% decline in October. On an annual basis, retail sales climbed 1.4% in November, following a downwardly revised 2.4% increase in the preceding month.
Meanwhile, German factory orders rose 1.5% in November, overshooting economists' expectations for a 0.1% gain. On a yearly basis, the gauge surged by 2.1% in the reported month, after posting a revised 1.6% decline in the previous month.
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