Spain’s unemployment rate fell to its lowest in almost three years between July and September. <br /><br />It slipped to 23.7 percent from 24.5 percent in the previous quarter, as the key services, industry and construction sectors expanded, while agriculture recorded a fall.<br /><br />Analysts said the numbers showed Spain’s economy is now capable of creating jobs, even at moderate growth levels<br /><br />But its jobless rate is still the second highest in the eurozone behind Greece and a major drag on the country’s recovery.<br /><br />At the same time the Bank of Spain warned economic weakness abroad – particularly in the eurozone – is threating that recovery.<br /><br />The central bank expects growth to have slowed to 0.5 percent quarter on quarter between July and September. <br /><br />It also warned that forecasts of growth of 1.3 percent this year and 2 percent in 2015 were increasingly under threat.<br /><br />“Downside risks to this central scenario have accentuated in the last few months due to a worsening of the international outlook.” the Bank of Spain said in its quarterly report.<br /><br />Eurozone businesses performed much better than expected in October but did so by slashing prices, while optimism about the future fell to its lowest level in over a year, surveys showed. <br /><br />with Reuters
