German unemployment surged by 9,000 to 2.799 million in July, The Federal Labour Office said on Thursday. This is the biggest increase since May 2014.
In June, unemployment dropped by 1,000, while analysts predicted a drop by 5,000 this month.
The data raises concerns about the strength of domestic demand in Europe’s biggest economy, which mainly lifts growth in the 19-nation region.
Another report released today from the euroarea showed that Spain grew 1.0 percent in the second quarter from 0.9 percent in the first three months of 2015, coming below forecasts of 1.1 percent expansion.
The euro dropped against the U.S. dollar for a third straight session to trade around 1.0966, after hitting a bottom of 1.0940.