German jobless rate falls to lowest level on record
BERLIN (Reuters) - Germany's unemployment rate fell to 6.3 percent in November, the lowest level since reunification in 1990, reinforcing expectations that private consumption will continue to support growth in Europe's largest economy.
The seasonally adjusted unemployment total fell last month by a stronger-than-expected 13,000 to 2.772 million, data from the Federal Labour Office showed on Tuesday. Economists polled by Reuters had expected it to drop by 5,000.
The data came after a bout of weakness during the summer, driven by slowdowns in China and other emerging markets, which raised questions about the strength of exports and the broader economy.
"Unemployment came down despite the fact that the industry has clearly had a couple of difficult months over the summer," said Carsten Brzeski, chief economist at ING-DiBa.
Brzeski said he expected the economy to grow by 0.3 percent in the October-December period - on a par with its performance in the third quarter, when private and public consumption drove growth.
But he warned that security-related risks represented a potential threat to the economy. Germans have been particularly worried about possible attacks on Christmas markets following the Nov. 13 attacks in Paris which killed 130 people.
Data on Monday showed monthly retail sales slipping but that reading is notoriously volatile and other figures have pointed to private consumption holding up in the fourth quarter, with inflation remaining low and a survey showing Germans becoming more willing to buy.
(Writing by Michelle Martin; Editing by Noah Barkin)
