(MENAFN– ecpulse) German unemployment retreated more than forecast in January, adding to signs the Germany economy will continue to lead euro area recovery.
Jobless rate in Europe’s biggest economy recorded 6.8 percent compared to analysts forecast referred to a hold at 6.9 percent, where the prior reading was revised down to 6.8 percent.
The number of job seekers retreated by 28,000 in January, better than forecast of 5,000 drop. The preceding reading was revised up from 15,000 to 19,000.
The labor market in Germany is still witnessing remarkable improvement while some euro area countries are still suffering from record high rates.
A report due tomorrow may show that euro area unemployment lingered at its record high of 12.1 percent in December.
The manufacturing sector widened growth in January to 56.3 versus 54.35, while the services gauge inched up to 53.6 from 53.5, according to PMI figures released last week.
German business confidence resumed its rally for a third straight month in January, a report release this week showed.
The Bundesbank, however, expects growth to rise “strongly” in the coming months despite the slow start of the last quarter.
Germany will expand 1.7% in 2014, up from its prior estimate of 1.5%, the Bundesbank said in its semiannual forecast released earlier in December.
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