Euro area unemployment rate hits another euro era record high in May2 July, 2012, 17:22. Posted by Zarathustra
Tags: Euro Crisis
Euro area unemployment rate increased to 11.1% in May from 11.0% in the previous month, hitting yet another euro era record high, in-line with estimate. In particular, Spain’s unemployment rate increased from 24.3% in April to 24.6% in May.
We also had a bunch of euro area manufacturing PMI numbers for June coming out earlier, with most showing continued contraction in manufacturing activities, although some less bad than the market has expected. Spain’s PMI hits a 37-month low of 41.1, while Greece’s PMI dropped to 40.1, disappointed the market. Meanwhile, Germany’s PMI fell from 45.2 to 45.0, and France’s PMI was slightly up from 44.7 to 45.2 with new orders employment down. One bright spot, however, is Ireland, with manufacturing PMI rising to 53.1, a 14-month high. The euro area composite PMI for June rose slightly to 45.1 from 44.8, better than expected.
The chart below shows the unemployment rate of euro area, demonstrating the on-going slow-motion train-wreck in the euro area economy.