20100405 1126 Global Economic News.

The US economy gained 162,000 jobs in March (-14k in Feb), more than any other month in the last three years. Economists surveyed had forecast a gain of 184,000 jobs. But despite missing forecasts, the March number was generally not seen as a disappointment by economists, because revisions in January and February readings added a combined 62,000 additional jobs. The unemployment rate remained stubbornly high, holding steady at 9.7%, matching economist expectations.

• While the news was positive, there were a number of short-term factors that inflated the reading, including an addition of 48,000 by the Census Bureau as it geared up for the once-in-a-decade headcount of the US population. 
• March's job gain was also bolstered by weather factors as February's numbers had been depressed by temporary job losses related to severe winter storms last month. (CNN Money)

The slow but steady US economic recovery appears set to continue, with underlying indicators signaling a growing strength. "The trend has turned," said White House economic adviser Lawrence Summers. He noted that the increase in jobs does not automatically reduce overall unemployment.

• "But to get back to the surface, we've got a long way to go." Former Federal Reserve Chairman Alan Greenspan. The recovery so far has led to conditions for compounding growth. In particular, Greenspan cited an increasing demand for inventory that spurs production as a signal of a possible significant build-up in growth. He doubted another drop in growth to create what economists call "double-dip recession" after the downturn of 2008-2009, saying the odds were "very much against that now." (CNN Money)

Christina Romer, the chair of Obama's Council of Economic Advisers said the recovery would have to be systemic rather than consumer-driven because, in the wake of the recession, "we're not going to be see people maxing out their credit cards again." She predicted economic growth for the year of 3%, which would be enough to keep creating jobs but not enough to significantly reduce the unemployment rate. (CNN Money)

US Treasury Secretary Timothy Geithner said on Saturday he was delaying an April 15 report on whether China manipulates its currency but pledged to press for a more flexible Chinese currency policy. Treasury gave no indication when it will actually release the report. Geithner in a statement urged China to move toward a more flexible currency and said a series of meetings over the next three months will be “critical” to bringing policy changes that lead to a stronger, “more balanced” global economy. The delay comes as Chinese President is scheduled to visit Washington for a nuclear summit April 12-13. (CNBC, Bloomberg)

US companies in China are being constrained by a host of new regulations restricting their market access, a survey by the American Chamber of Commerce in China shows. For the first time in the survey’s 12-year history, US firms reported that their biggest challenge was “inconsistent regulatory interpretation” on the part of China’s government, such as new rules mandating purchases of home-grown technology and irregular enforcement of laws. In past years personnel issues, such as hiring experienced managers, were top concerns. “These policies appear to be diminishing the ability of foreign companies to access the Chinese domestic market, right at the time China shifts from being an export-led economy to a more domestic-consumption-led economy,” John Watkins, Amcham’s chairman, said. (Bloomberg)

South Korea’s foreign-exchange reserves rose to US$272.3bn in March (US$270.7bn in Feb), boosted by investment returns. The value of holdings increased even as the euro and yen declined against the greenback in the period, the central bank said. (Bloomberg)

Thailand’s foreign-exchange reserves rose 0.3% to US$143.8bn in the week ended 26 Mar, from US$143.4bn a week earlier. The central bank’s holdings of forward contracts rose 6.2% to US$12.7bn in the week ended 26 Mar, from US$12.0bn a week earlier. (Bloomberg)

India’s pace of economic growth is “impressive” and may accelerate to the fastest in three years this financial year, Finance Minister Pranab Mukherjee said. The economy may expand between 8.25-8.75% in the 12 months through March, against an estimated 7.2% last fiscal year, Mukherjee noted. (Bloomberg)

China has agreed to lend at least US$1.8bn in soft loans to Indonesia as part of its free trade agreement with the 10-member Association of Southeast Asia Nation (Asean). Indonesia’s Trade Minister Mari Pangestu announced that the US$1.8bn in export buyers credits to finance the import of Chinese goods used for infrastructure and infrastructurerelated projects. (Financial Daily)

Bank of Japan policy makers will consider raising their economic assessment next week after mounting evidence that the export-led recovery exceeds their expectations. The board may stop saying the expansion will “remain moderate” in coming months at the April 6-7 meeting because demand from emerging markets is spurring exports and production. The central bank’s Tankan survey yesterday showed big manufacturers became the least pessimistic since 2008. (Bloomberg)

The world economy could grow 4.1% this year, 0.2pt more than previously forecast, the International Monetary Fund (IMF) says in the latest draft of its World Economic Outlook. The US economy is now expected to grow 3.0% this year (estimated 2.7% previously) while Euro-zone growth this year is forecast to be 0.8%, down 0.1pt from January’s estimate. The IMF is due to publish its report on 21 Apr. (BT)