US employment spikes more than expected in July, unemployment rate fell to 5.4 percent. A strengthening US labour market added support to the US economic recovery in July ahead of the surge in cases of the coronavirus’s Delta variant, with employers creating jobs at the best pace in almost a year and the unemployment rate falling sharply. The closely watched nonfarm payrolls number rose by a seasonally adjusted 943,000 in July, the best gain in 11 months, after surging by an upwardly revised 938,000 jobs in June, the Labour Department said on Friday 6. Economists had expected employment to jump by 870,000 jobs compared to the addition of 850,000 jobs originally reported for the previous month. The unemployment rate fell to 5.4 percent in July from 5.9 percent in June to hit the lowest level since the pandemic took hold in the US in March 2020. The report shows that the US economy is facing any threat posed by the Delta variant with a strong tailwind.
US consumer price growth slows in July, signs that inflation has peaked. Consumer prices in the US increased in line with economist estimates in July, reflecting higher prices for shelter, food, energy, and new vehicles, a Labour Department report released on Wednesday showed. The consumer price index increased by 0.5 percent last month after climbing 0.9 percent in June, the report showed. In the 12 months through July, the consumer price index advanced by 5.4 percent. The drop in the month-on-month inflation rate was the largest in 15 months. The data could provide some support to Federal Reserve officials who have repeatedly said that the current burst in inflation is temporary and likely to fade in the coming months.
UK logs strong recovery in second quarter. The UK economy saw a robust recovered in the second quarter as the easing of coronavirus restrictions boosted consumer spending, the first quarterly estimates from the Office for National Statistics showed on Thursday. Gross domestic product grew 4.8 percent sequentially in the second quarter, reversing a 1.6 percent fall in the first quarter. The rate matched economists' expectations. That made growth for the second quarter close to the five percent pace the Bank of England predicted last week. Notwithstanding the recent growth, the British economy remained 2.2 percent smaller at the end of June than it was in February 2020, before the pandemic struck the country, a reminder of the huge hit dealt by Britain’s long coronavirus lockdowns last year.
German consumer prices spike on low base year effect. The inflation rate in Germany was at its highest in more than 27 years in July largely due to the low base of comparison, final data published by Destatis revealed on Wednesday. Consumer prices increased by 3.8 percent on a yearly basis in July, faster than the 2.3 percent gain seen in June. Food prices advanced by 4.3 percent in July and services costs grew by 2.2 percent. The core inflation rate, which excludes volatile items such as food and energy, came in at 2.7 percent. "The sudden base effect occurring in July 2021 had been expected as the tax reduction had been passed on to consumers a year ago, involving price decreases for many products," said Christoph-Martin Mai, head of the consumer prices section at Destatis.
India's industrial production logged a double-digit growth in June due the low base of comparison, official data revealed on Thursday. Industrial production grew by 13.6 percent on a yearly basis in June, but much slower than the revised 28.6 percent expansion seen in May. Economists had forecast an annual increase of 13.5 percent. The strict restrictions imposed to curb the virus were a headwind to economic activity in the same period last year. Industrial production had declined by 16.6 percent annually in June 2020. Mining output advanced 23.1 percent, manufacturing output rose 13 percent and electricity output gained 8.3 percent in June. During April to June, industrial output surged 45 percent from the same period of 2020.