Tag Archives: Eurozone

Eurozone Economy Grows Beyond Expectations

Eurozone Economy Grows Beyond Expectations, Backed by Germany and Spain

Stronger-than-expected performance in the eurozone led by German and Spanish growth renews hopes of recovery.

 

Contents:

 

 

 

Eurozone

Eurozone Economy Exceeds Expectations in Q1, Driven by Germany and Spain
 Preliminary data released by Eurostat on Wednesday showed that the eurozone economy grew by 0.4% in the first quarter of 2025,
surpassing analysts’ expectations of 0.2% growth.
This matches the expansion pace recorded in the fourth quarter of 2024.

This stronger performance boosts optimism about the region’s recovery following a period of economic slowdown.
 The growth was largely driven by robust performance from major economies within the bloc. Germany’s economy grew by 0.2%, while Spain and Italy outperformed with growth rates of 0.6% and 0.3%, respectively, during the first three months of the year.
 On an annual basis, seasonally adjusted GDP rose by 1.2%, maintaining the same growth rate recorded in the previous quarter.

 

China

Chinese Stocks Decline Ahead of Labor Day Amid Unexpected Factory Contraction
 Chinese stock indices showed mixed performance at Wednesday’s close, reflecting growing concerns over a domestic economic slowdown. This followed data showing factory activity contracting at the fastest pace in 16 months, just before the extended Labor Day holiday.

The Shanghai Composite Index dropped by 0.25% to close at 3,279 points, while the CSI 300 Index fell by 0.1% to 3,770 points. In contrast, the Shenzhen Composite Index rose by 0.7% to 1,915 points.

These moves came after the National Bureau of Statistics reported a decline in the Manufacturing PMI to 49 points in April, down from 50.5 in March. This marks the first contraction in the sector since January and the weakest reading since May 2023.

 

Germany

German Retail Sales Shrink in March at Weakest Pace in Three Months
 According to data released Wednesday by Germany’s Federal Statistical Office (Destatis), retail sales in Germany shrank by 2.2% year-on-year in March, marking the weakest performance in three months. This compares to a previously reported 4.9% contraction in February, which was later revised to 4.3% growth.

On a monthly basis, retail sales declined by 0.2% in March compared to February, performing slightly better than market expectations of a 0.4% drop. February’s initial reading of 0.8% monthly growth was also revised downward to 0.2%.

These figures indicate that consumer spending remains weak in Europe’s largest economy, despite a modest improvement on a monthly basis.

 

 

Eurozone Economy Grows Beyond Expectations

UK House Prices See Fastest Growth Since February 2023

UK House Prices See Fastest Growth Since February 2023: UK house prices rose by 3.3% year-on-year in November,
marking the fastest growth rate since February 2023, according to the Office for National Statistics.
The average house price reached £290,000 ($354,600), while the average price in England rose by 3% annually to £306,000.

 

Content

UK House Prices
Eurozone Industrial Output Shrinks 

Bank of Japan Governor

 

 

 

 

UK House Prices Record Highest Annual Growth Rate Since February 2023

UK house prices increased by 3.3% year-on-year in November, recording the fastest annual growth since February 2023,
according to the Office for National Statistics.
The average house price reached £290,000 ($354,600); in England, it rose 3% year-on-year to £306,000.

This growth persists despite higher borrowing costs, reflecting the resilience of the UK housing market.
However, these figures challenge the Bank of England in shaping monetary policy,
notably as annual inflation slowed to 2.5% in December, down from 2.6% in November.

 

Eurozone Industrial Output Shrinks Further in November Amid Declines in Capital and Intermediate Goods Sectors

Data released by Eurostat on Wednesday showed that industrial output in the Eurozone contracted by 1.9% year-on-year in November,
compared to a 1.1% contraction in October. This highlights a deepening industrial recession that has persisted for over a year.

The decline was driven by a 2.5% drop in intermediate goods production, a 1.3% fall in energy output,
and a 2.8% decrease in capital goods. In contrast, the production of non-durable consumer goods remained stable.
Germany, the region’s largest economy, was among the hardest hit, with industrial output falling by 3.3%,
following sharp declines of 4.5% in October and 4.3% in September.

Despite the annual contraction, industrial output in the Eurozone increased slightly by 0.2% in November,
the same growth rate as October, following a 1.6% decline in September.

 

 

 

 

Bank of Japan Governor: Monetary Policy Decisions Depend on Economic Improvement Signals

Bank of Japan Governor Kazuo Ueda stated during a meeting with branch
managers that the central bank would raise interest rates or adjust its monetary
support if economic and price conditions continue improving toward the inflation target.
Ueda emphasized that upcoming decisions would be based on thorough discussions during the next monetary policy meeting.

He also highlighted the importance of monitoring economic developments in the US and their impact on Japan’s economy.
Ueda noted that the momentum surrounding upcoming spring wage negotiations would be critical,
expressing optimism about early signs of positive wage increases.

Ueda added that the timing of any policy adjustments would depend on future economic,
price, and financial conditions.
This reflects the central bank’s data-driven approach to ensuring monetary stability and achieving inflation targets.

 

UK House Prices See Fastest Growth Since February 2023

Australian Job Market Numbers Exceed Expectations

Australian Job Market Numbers Exceed Expectations

Data released by the Australian Bureau of Statistics on Thursday morning showed
that the Australian job market performed better than expected in September.

 

 

Content:
Australia
Gold
Inflation

 

 

Australia

The Australian economy added approximately 64.1 thousand jobs, surpassing market expectations of only 25.2 thousand jobs.
These numbers also exceeded August’s revised figure, which showed an addition of 42.6 thousand jobs,
up from the previously reported 47.5 thousand.

As for the unemployment rate, it remained steady at 4.1% in September, better than the expected 4.2%.
The August figure was also revised positively, showing a drop in unemployment from 4.2% to 4.1%.

 

 

 

 

 

Gold

It Nears Record High
Gold prices rose during Thursday’s trading session, nearing their historical highs amid ongoing uncertainty in the markets due to the upcoming U.S. elections and heightened anticipation for U.S. retail sales data.
Spot gold prices increased by 0.29%, or $7.6, reaching $2,680.9 per ounce, approaching the record high of $2,685.42 recorded on September 26.
Gold futures for December delivery also saw a slight increase of 0.16%, or $4.4, reaching $2,695.2 per ounce.

 

 

 

 

Inflation

Eurozone Inflation Rates Continue to Decline
Inflation in the Eurozone slowed in September, reaching 1.7% according to the second reading, lower than the previous estimate of 1.8%.
This deceleration follows a 2.2% rate recorded in August,
marking the lowest inflation level in over three years and below the target set by the European Central Bank,
reinforcing expectations of potential interest rate cuts.

Additionally, core inflation, which excludes energy and food costs, was confirmed to be 2.7%, in line with previous forecasts.

In a separate report, preliminary estimates showed a trade surplus of €4.6 billion in the Eurozone’s external goods trade during August, compared to €4.8 billion in the same month last year.

 

 

Australian Job Market Numbers Exceed Expectations