The European Commission confidence indicators showed another weakening in November. Economic confidence dropped from a downwardly revised 80.0 to 74.9, while a figure of 78.0 was expected. The weaker than expected figure was due to a sharp deterioration in industrial confidence (-25 from -18) and services confidence (- 12 from -7), while consumer confidence showed only a marginal decline (-25 from - 24). Economic confidence is now at a 16-year low, which is in line with the other European confidence indicators and confirms the very bleak outlook for the euro zone economy. The business climate indicator plunged from -1.34 to -2.14 in November, the lowest figure since 1993.
In Germany, the number of people unemployed fell 10 000 in November. The consensus estimate was looking for a decline of 5 000. The number of jobs created rose from 22 000 in September to 37 000 in October, while the number of vacancies stabilized at 563 000. These data indicate that employment keeps up rather well, but labour market conditions are expected to worsen in the coming months.
Euro zone money supply growth came out higher than expected in October. On a yearly basis, M3 money supply rose 8.7% Y/Y, while the consensus was looking for an outcome of 8.1% Y/Y. The previous figure was upwardly revised from 8.6% Y/Y to 8.7% Y/Y. Looking at the details, bank lending to the private sector slowed from 8.5% Y/Y to 7.8% Y/Y. Growth in household lending declined to 3.3% Y/Y (from 3.8% Y/Y) and loans to non-financials showed a moderate slowing (11.9% Y/Y from 12.2% Y/Y). The higher than expected figure was due to a sharp increase in M1 (3.7% Y/Y from 1.2% Y/Y), which might be due to increased turmoil in financial markets, which has increased demand for cash.
