- Private-sector employers cut payrolls by 23,000 jobs in March (-24k in Feb), marking the smallest monthly decline since February 2008. The decline was contrary to market estimates for a gain of 40,000 jobs in the month.
- The service sector reported an increase of 28,000 jobs in March, marking the second consecutive monthly increase and the highest job growth since March of 2008. However, that growth was offset by a loss of 51,000 jobs in the goods-producing sector and a drop of 9,000 manufacturing jobs.
- "American businesses are on the cusp of recovery, yet this report shows that they remain hesitant to increase their payrolls," Gary Butler, chief executive of ADP, said. (CNN Money)
US new factory orders rose for a sixth straight month in February as businesses rebuilt inventories, pointing to continued expansion in the manufacturing sector. Orders for manufactured goods increased 0.6% (2.5% in Jan). Economists polled had forecast factory orders rising 0.5% last month. Orders excluding transportation rose 0.7% (0.5% in Jan).
- Orders for non-defense capital goods excluding aircraft, seen as a measure of business confidence, rose 2.0%(-4.4% in Jan). Inventories rose 0.5% in February (0.3% in Jan), the biggest increase since August 2008.That left the inventories-toshipment ratio, a measure of how long it would take to deplete current stocks, unchanged at 1.29 months' worth.(CNBC)
Atlanta Federal Reserve Bank President Dennis Lockhart warned of the possibility that the central bank could face circumstances that warrant the start of monetary policy tightening "well before" the rate of unemployment is at a "satisfactory level." Labor market trends appear to be moving in the right direction, Lockhart said, but added it's quite possible the recovery could be well advanced before any significant reduction of unemployment materialises. (Xinhua)
The decline in loan outstanding in US remains "of great concern" but Federal Reserve Governor Elizabeth Duke expressed optimism that the trend will begin to reverse later this year, partly in response to improved economic conditions. Overall, the central banker deemed the banking sector as still "weak," with commercial real estate the source of most stress for the majority of community banks. (Xinhua)
President Obama confirmed that he will be expanding offshore oil and gas exploration in the US, saying that "given our energy needs, in order to sustain economic growth, produce jobs, and keep our businesses competitive, we're going to need to harness traditional sources of fuel even as we ramp up production of new sources of renewable, homegrown energy." (Xinhua)
Europe’s consumer prices increased 1.5% yoy in March (0.9% in Feb) on higher oil prices. That is the fastest inflation since Dec 08 and topped the economists’ forecast of 1.1%. Unemployment rose to 10.0% in February, marking the highest rate since Aug 98. (Bloomberg)
European Commission (EC) said that Germany and other European countries with strong exports need to boost domestic spending to help smooth out regional economic imbalances. “Export successes should translate into stronger domestic demand, thus boosting imports. The structural weaknesses of domestic demand need to be identified and tackled to ensure regional growth is balanced,” it said. (Bloomberg)
South Korea’s February industrial production gained 3.6% from January, when it was unchanged from the previous month, on increased orders for computer chips and automobiles. Economists forecast for a 1.5% mom gain for February. From a year earlier, output climbed 19.1% (36.9% in Jan). (Bloomberg)
South Korea’s president told the new central bank chief to coordinate with other countries in unwinding stimulus policy, reinforcing investors’ view that interest rates will stay low for a few more months. “Countries should coordinate with each other over exit strategy,” he said. (Financial Daily)
China’s central bank said the nation’s economic rebound has been “further cemented” and managing liquidity in the aftermath of a record credit expansion is “arduous.” China faces “extremely complex economic and financial situations” at home and abroad. The economy continues to rebound while pointing to “prominent problems” including an “urgent” need to “transform the growth model” and reduce reliance on exports. (Bloomberg)
The People’s Bank of China (PBoC) reaffirmed its appropriately loose monetary stance but said it would implement the policy more flexible. “We will apply various policy tools to keep banking liquidity reasonably ample and steer an appropriate rise in overall money supply and credit,” it said. (Financial Daily)
Emerging markets face the risks of asset bubbles that could burst dangerously once the US raises interest rates, a vice governor of China’s central bank, Zhu Min said, while also stressing the risks of an unsteady dollar. “What is worrisome is that once the US Federal Reserve embarks on interest rate increases, this dollar arbitrage may return (to the US), causing these bubbles to burst. The big fluctuations in the dollar have had quite a big impact on the global economy and financial markets,” he noted. (Financial Daily)
Thailand’s industrial production rose for a sixth straight month in February, as manufacturing output climbed 30.3% yoy (29.1% in Jan). The median estimate was for a 28% increase. Exports moderated to 23.5% yoy (31.4% in Jan) while import growth surged to 80.8% (50.1% in Jan). The current-account surplus narrowed to US$1.52bn in February (US$2bn in Jan). (Bloomberg)
Indonesia plans to allow foreigners to own property in the country and has completed its review of investment rules under the so-called negative list, the country’s investment coordination agency said. The country will deregulate its property industry by the end of the first half, paving the way for foreigners to buy homes and commercial real estate directly. (Bloomberg)
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