Unemployment figures in Germany fell more than expected in May, leading to a drop-in unemployment rate to a record low in reference to the strength of the labor market, which became the main driver of the improvement in consumption.
The number of unemployed fell by 11,000 to 2.358 million, against expectations of a decline of only by10,000. The unemployment rate fell to 5.2% in May, the lowest level since Germany's reunification in 1990.
The strong labor market is likely to boost consumer confidence and household spending in Europe's largest economy, which has seen domestic demand overtake exports as a major driver of growth in recent years.
