Tag Archives: Economic indicators

Australian job advertisements approach their 2-1 / 2 year peak in February | Instant News


FILE PHOTOS: Workers cast their shadows as they walk between office towers in Sydney’s Barangaroo business district in Australia’s largest city, 8 May 2017. REUTERS / Jason Reed

SYDNEY (Reuters) – Australia’s job advertisements rose to near a 2-1 / 2 year peak in February, for another sign massive fiscal and monetary stimulus is working to shore up the country’s economy following the recession caused by the coronavirus pandemic.

Monday’s figures from the Australian and New Zealand Banking Group showed total job advertisements grew 7.2% in February from January, when they rose a revised 2.6%.

At 174,010, advertisements are at their highest level since October 2018. They are also 13.4% higher than they were in December 2019, a strong increase given that April’s coronavirus lockdown has plunged the domestic economy into its first recession in three decades. April job advertisements totaled 64,828, down 61% from a year earlier.

“The continued strength in ANZ Job Advertisements gives us confidence that we will see a solid increase in net employment continuing during at least February and March,” said ANZ senior economist Catherine Birch. “The task of stopping the underutilization is still big enough.”

Official data showed 878,000 people were unemployed in January, 162,000 more than in March last year, while 1.37 million remained on government support.

Australia’s official unemployment rate stands at 6.4%, much higher than the 4% or less that the country’s central bank says is needed to boost wage growth and inflation.

Reporting by Swati Pandey; edited by Jane Wardell

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Australian job advertisements approach their 2-1 / 2 year peak in February | Instant News


FILE PHOTOS: Workers cast their shadows as they walk between office towers in Sydney’s Barangaroo business district in Australia’s largest city, 8 May 2017. REUTERS / Jason Reed

SYDNEY (Reuters) – Australia’s job advertisements rose to near a 2-1 / 2 year peak in February, for another sign massive fiscal and monetary stimulus is working to shore up the country’s economy following the recession caused by the coronavirus pandemic.

Monday’s figures from the Australian and New Zealand Banking Group showed total job advertisements grew 7.2% in February from January, when they rose a revised 2.6%.

At 174,010, advertisements are at their highest level since October 2018. They are also 13.4% higher than they were in December 2019, a strong increase given that April’s coronavirus lockdown has plunged the domestic economy into its first recession in three decades. April job advertisements totaled 64,828, down 61% from a year earlier.

“The continued strength in ANZ Job Advertisements gives us confidence that we will see a solid increase in net employment continuing during at least February and March,” said ANZ senior economist Catherine Birch. “The task of stopping the underutilization is still big enough.”

Official data showed 878,000 people were unemployed in January, 162,000 more than in March last year, while 1.37 million remained on government support.

Australia’s official unemployment rate stands at 6.4%, much higher than the 4% or less that the country’s central bank says is needed to boost wage growth and inflation.

Reporting by Swati Pandey; edited by Jane Wardell

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Brazil’s unemployment rate fell to 13.9% in the quarter to December | Instant News


BRASILIA (Reuters) – Brazil’s unemployment rate ended last year at 13.9%, figures showed on Friday, extending its recent decline as workers returning to the labor market found jobs, but the average unemployment rate in 2020 was the highest since comparable records began in 2012..

FILE PHOTOS: A woman writes on her phone job opportunities from a list posted on a lamppost in downtown Sao Paulo, Brazil, September 30, 2020. REUTERS / Amanda Perobelli

That was down from 14.1% in the three months to November, statistics agency IBGE said, in line with the median forecast in a Reuters poll of economists and slipped further than the record 14.6% in the three months to September.

Brazil’s unemployment rate ended 2019 at 11.0%.

The average unemployment rate last year was 13.5%, said the IBGE, up from 11.9% a year earlier and the highest since the series began eight years ago.

The IBGE figure shows 86.2 million Brazilians are employed, up 4.5%, or 3.7 million people, from the July-September period, although still down 8.9%, or 8.4 million people, from the same period the previous year.

The number of Brazilians officially unemployed in the three months to December fell slightly to 13.9 million from 14.1 million in the previous three months, the IBGE said, but that was up nearly 20% from a year ago.

The underemployment rate fell to 28.7% from 30.3% in the July-September period, while the hidden unemployment rate averaged last year to a record 28.1%, the IBGE said.

The number of unemployed fell 1.1 million to 32 million, said the IBGE. That is still 22.5% higher than the same period the previous year, or an increase of nearly 6 million people.

The workforce reached 100.1 million people, up 3.5 million from the three months to September, and the number of people leaving the total workforce fell 2.3 million to 76.3 million, the IBGE said.

However, compared to the previous year, the workforce was still down by 6.1 million people, and there were nearly 11 million more people who were completely discharged from the workforce, said the IBGE.

Reporting by Jamie McGeever; editing by Barbara Lewis

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Strong exports and construction boosted the German economy in the fourth quarter | Instant News


BERLIN (Reuters) – Strong exports and solid construction activity helped Germany’s economy grow better than the 0.3% forecast in the last quarter of last year, but tighter lockdown measures at home and abroad are clouding the prospects for Europe’s largest economy. .

FILE PHOTOS: Skyline with its financial district photographed as the sun sets as the spread of the coronavirus disease (COVID-19) continues in Frankfurt, Germany, November 1, 2020, REUTERS / Kai Pfaffenbach / File Photo

The data, published by the Federal Statistical Office on Wednesday, marked an upward revision to the previous forecast for a 0.1% expansion over the previous quarter.

The office also revised up the 2020 full-year GDP figure to -4.9% from -5.0%.

Adjusted for calendar effects, the German economy shrank 5.3% last year, a much smaller contraction than in many other European countries, helped by a strong fiscal response to the damage caused by the COVID-19 pandemic.

Debt-financed fiscal waste created an overall state budget deficit of 139.6 billion euros or 4.2% of gross domestic product in 2020, the office said. This is the first deficit since 2011 and the second highest since German reunification.

Economy Minister Peter Altmaier said the growth data sent a positive signal, adding: “We will continue to do everything we can in the coming months to maintain the substance of our economy.”

Germany recorded a record 8.5% growth in the third quarter and an unprecedented 9.7% decline in the second, due to the effects of the first coronavirus lockdown.

The second lockdown, imposed in early November on hotel establishments and extended in mid-December to include most shops and services, led to a fall in household spending in the fourth quarter, the office said.

DEMAND FROM CHINA

However, disposable income has risen slightly, thanks to job protection schemes and state assistance for the elderly. Because the lockdown prevented many consumers from spending, the savings rate was a very high 15.7%.

Household spending fell 3.3% this quarter and construction spending increased 1.8%. Exports grew 4.5%.

This means net trade contributed 0.6 percentage points to the overall growth rate, while sluggish domestic activity reduced 0.3 percentage points, the office said.

Thomas Gitzel at VP Bank said export-oriented manufacturers are benefiting from increased orders from China while low interest rates are helping the construction industry.

But prospects remain fuzzy as German authorities have extended tougher lockdowns until at least March 7, while restrictions in other countries are dampening demand from abroad.

“Going forward, we stick to our forecast of a 1.5% q / q decline in the first quarter of 2021, mainly due to the negative effect on overall economic activity from an extended and tightened lockdown,” UniCredit said in a research note.

ING’s Carsten Brzeski said that tighter lockdown measures since mid-December, weaker demand from other eurozone countries, harsh winter weather in February and a reversal of pre-Brexit stockpiling in the UK have increased downside risks for the first quarter of 2021 .

“The growth driver in the fourth quarter could easily become a drag in the first quarter,” Brzeski warned.

Reporting by Michael Nienaber; Edited by Maria Sheahan and Kevin Liffey

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UPDATES The 1-NZ central bank left interest rates unchanged, marking economic uncertainty | Instant News


(Adding details, currency drop)

WELLINGTON, February 24 (Reuters) – New Zealand’s central bank kept its official interest rate at a record low of 0.25%, as expected, on Wednesday, saying the level of stimulation of the current monetary arrangement was needed to meet consumer price inflation and employment payments. .

The Reserve Bank of New Zealand (RBNZ) also maintains a large-scale asset purchase (LSAP) program of NZ $ 100 billion ($ 73.24 billion). Funding for Lending Program (FLP) operations have not changed.

Economists in a Reuters poll unanimously expected the RBNZ to keep interest rates on hold.

“The Committee agreed to maintain the current stimulating monetary arrangement until it is confident that consumer price inflation will be maintained at the midpoint of the 2% per annum target, and that employment is at or above its maximum sustainable rate,” he said in the statement.

Meeting these requirements will take a lot of time and patience, he added.

The New Zealand dollar fell 0.2% after the announcement, settling at $ 0.7359.

The RBNZ said in its Monetary Policy Statement that the recent resilience in the domestic economy implies that no significant additional stimulus is needed at this time.

The central bank cut interest rates by 75 basis points in March last year and said it would remain unchanged for 12 months, while also introducing quantitative easing to support an economy hit by border closures and the coronavirus lockdown.

But the faster recovery of the economy and worries about a burning property market supported by historically low interest rates have led markets to speculate that the easing cycle is over and that a rate hike may come sooner than expected.

Despite improving economic data, the RBNZ, which is one of the most dovish central banks, remains cautious, saying the future economic outlook remains “very uncertain”.

“This ongoing uncertainty is expected to limit business investment and household spending growth,” he said, adding that inflation and employment are likely to remain below their delivery targets over the medium term in the absence of any prolonged monetary stimulus.

The RBNZ has also revised its growth, employment and inflation forecasts, all of which have returned better-than-expected results since the last policy meeting in November. ($ 1 = 1,3654 New Zealand dollars) (Reporting by Praveen Menon and Renju Jose; Editing by Sam Holmes)

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