Signs of resilience for the German labor market in December. The unemployment rate in Germany stood at 5.5%, versus the 5.6% expected by the Bloomberg consensus. The previous month’s reading was revised from 5.6% to 5.5%.
The total number of people filing for unemployment benefits unexpectedly decreased by 13,000. Estimates called for an increase of 15,000 units, in line with the November figure (revised from 17,000 units previously reported).
These latest positive indications add up to yesterday’s data on manufacturing activity, which confirm that the downturn in the sector is easing. Furthermore, Bundesbank President Joachim Nagel said he was optimistic that the country could avoid a major crisis.
Attention should be paid to this afternoon’s data on December inflation, which according to expectations should show a slowdown for the second consecutive month.