French Economy Stagnates; Italian Confidence Declines

Arthi Gupta
28 Sep, 2011
New York City

French economy stagnated in the second quarter. Germany import price annual inflation eased in August. Hungary''s unemployment rate remained unchanged during June to August. Sweden economic confidence index and Italian manufacturing confidence fell in September.

[R]3:00 PM Frankfurt – French economy stagnated in the second quarter. Germany import price annual inflation eased in August. Hungary''s unemployment rate remained unchanged during June to August. Sweden economic confidence index and Italian manufacturing confidence fell in September.[/R]

France Economy Stagnates

The French economy stagnated in the second quarter as initially estimated, according to the final data from the statistics office Insee.

The Gross Domestic Product remained flat on a sequential basis in the second quarter, following the 0.9% growth in the prior quarter.

Separately, the French government said it plans to reduce the budget deficit to 4.5% of gross domestic product in 2012 from 5.7% this year.

The government also estimated 1.75% economic growth for 2011 and 2012 and inflation for 2012 is expected to ease to 1.7%.

German Inflation Up, Import Price Inflation Eases

Germany''s annual consumer price inflation increased to 2.6% in September from 2.4% in August, preliminary data released by statistics office Destatis showed today.

On a monthly basis, consumer prices rose 0.1% in September, after remaining unchanged in August.

The final data for September will be released on October 13, the agency said.

Germany''s import price annual inflation eased to 6.6% in August, from 7.5% in July, the Federal Statistics Office stated.

On a monthly basis, import prices fell 0.7% in August.

Export price annual inflation also eased in August to 3.2% from 3.7% in July. On a monthly basis, export prices dipped 0.1%.

Hungary Jobless Rate Flat

Hungary''s average unemployment rate was 10.8% in the 15-74 age group in three months to August, unchanged now for the third three-month period and down from 11% in the same period a year ago, the Central Statistics Office said on Wednesday.

The number of unemployed decreased to 462,800 during the period compared to 463,200 during May to July. The report also showed that 51.5% of unemployed had been searching for a job for one year or more.

Sweden Sentiment Drops

Sweden''s economic confidence index dropped to 96.9 in September from 100.3 in August, data released by the National Institute of Economic Research showed on Wednesday

The consumer confidence index slumped to minus 5.8 in September from 4.3 in August, reflecting increased pessimism among consumers with regard to their personal finances as well as the country''s economy.

Italian Manufacturing Confidence Declines

Italy''s seasonally adjusted manufacturing confidence index fell to 94.5 in September from 98.6 in August, according to data released by statistics office Istaty.

The indicator of confidence in the construction sector rose to 77 in September from 75.9 in August.