"On balance, this survey and others suggest that the German economy is faring well for now. But we doubt that recent strong rates of growth, which have owed much to the effects of falling inflation on consumer spending, will be sustained".
- Jennifer McKeown, Capital Economics
The Euro zone's employment growth slowed in the September quarter, official figures revealed on Tuesday. According to flash figures published by Eurostat, the number of employed persons climbed 0.2% in the Q3, down from the preceding quarter's gain of 0.4%, whereas economists expected an increase of 0.3%. However, there were 153.4 million employed in the region, the highest level since the Q4 of 2008. On a yearly basis, employment growth increased 1.2% in three months to September, following the prior quarter's 1.3% rise.
Other data released on the same day showed German economic sentiment remained unchanged in December amid the looming banking crisis in Italy and upcoming elections in the Euro zone's largest economies The Mannheim-based ZEW Institute's Economic Sentiment Index came in at 13.8, unchanged from November, while market analysts anticipated a slight acceleration to 14.2. In addition, the figure was below its log-term average pf 24.0 points. Meanwhile, the Current Conditions Index advanced to 63.5 in December, indicating positive trends within the German economy, whereas markets expected the Index to hold steady at 58.8 in the reported month.
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