US Consumer Confidence grew to the highest level in five years at 76.2 versus the predicted 71.2. On Friday a consumer confidence survey from the University of Michigan reported at six year highs, 84.5 for May, up from 76.4 from April. One of the main contributing factors in the recent increase was an improved job market as well as consumers saying that for the first time in years there financial situation had improved rather then gotten worse.
German unemployment unexpectedly rose by 21,000, higher than the predicted 5,000. This rise was in line with the past three months, as the labor markets in Germany suffer from the economic slowdown. The entirety of the increase in unemployment came from western Germany. Job vacancies continued their downward trend, falling by 7,000 after April's 10,000 decline, suggesting labor demand has not yet reached a trough despite the increasing jobless numbers.
German CPI rose from 1.1% to 1.7% versus the expected 1.4%. Although better than expected and better than the previous months this data alone wasn't enough to buoy the euro. The OECD updated its global growth forecasts, and continued to note that the Eurozone will likely lag and that the region continues to face stronger challenges than its developed world peers.
US GDP rose by only 2.4%, below the expected 2.5% that was released as the preliminary data. As one of the more negative pieces of data to be release this week, the GDP report tempered expectations for people and reinforced the global slowdown that we are indeed experiencing. Although not the final GDP report for the first quarter, the third and final report will be released in a month, it is the revised and more accurate of the two reports.
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