GEW October 8, 2009
AUS: The Unemployment Rate fell to 5.7% in August from 5.8% in the previous month, the first drop in the unemployment rate in five months. The unemployment rate among men eased to 5.8% from 5.9% in July and that for women remained unchanged at 5.6%. The Number of Persons Employed rose 40.6k (to 10.8 million) over the month compared with July, the biggest jump in employment in nearly two years, led by full-time employment that was up 35.4k while part-time employment made gains of 5.2k in August. The market however, was expecting a loss of 10k jobs. Despite the gains in employment, those looking for full-time jobs increased by 9.5k to 497.4k and those in search of part-time positions eased 13.3k to 161.2k. The participation rate in August increased to 65.2% from 65.1% in July.
GER: Industrial Production picked up 1.7% over the month in August, a tad lower than market expectations of a 1.8%mom increase though July’ output had fallen 1.1% and through the year to August was down 16.8%. The increase in industrial output was led by a 3.4%mom gain in intermediate goods output; a 4.2% surge in construction output 1.5%mom jump in output of capital goods construction gained 4.2 percent and production of durable goods such as household appliances increased 3.2 percent. Energy output declined 2.6 percent, the statement said.
EUR: In line with expectations, the ECB kept its Refi Rate unchanged at 1.00%. In its Monetary Policy Statement, the ECB considered that, “The current rates remain appropriate.” ECB President Jean Claude Trichet said that economic activity was stabilising and the euro area would benefit from, “a recovery in exports, the significant macroeconomic stimulus under way and the measures taken to restore the functioning of the financial system.” The Bank further went on to note that the inventory cycle was expected to contribute positively to real GDP growth in H2 2009, though uncertainty was high and “…the recovery is expected to remain rather uneven.”. The Governing considered the risks to the economic outlook broadly balanced with upside risks from the extensive stimulus and other policy measures and downside risks emanating from a more protracted negative feedback between the real economy and the financial sector along with a “renewed increases in oil and other commodity prices”. The ECB continues to assess a low inflationary environment over the medium term, on account of moderate credit expansion. The Bank went on say, “Against this background, we expect price stability to be maintained over the medium term, thereby supporting the purchasing power of euro area households.”
UK: As expected the Bank of England maintained the Repo Rate at 0.50% percent and agreed to continue the remainder of the GBP175 billion Asset Purchase Programme and expects to complete the programme in a month’s time, with a rider that, “the scale of the programme will be kept under review.”
