Friday, June 24, 2011

20110624 1028 Global Economic Related News.

Singapore: Consumer prices rise 4.5% in May
Singapore‟s inflation exceeded economists‟ estimates in May as food and transportation costs increased, supporting the central bank‟s decision to allow the currency to rise further. The consumer price index rose 4.5% last month from a year earlier, matching April‟s previously reported gain, the Department of Statistics said in a statement yesterday. Asian central banks from China to Thailand and India have raised interest rates or allowed their currencies to gain this year to curb price pressures as oil and food costs rise. (Bloomberg)

India: Food inflation accelerates to two-month high
India‟s food inflation accelerated to a two-month high, adding pressure on the central bank to increase interest rates further. An index measuring wholesale prices of agricultural products rose 9.13% in the week ended 11 June from a year earlier, the commerce ministry said in a statement in New Delhi yesterday. It gained 8.96% the previous week. Prime Minister Manmohan Singh is relying on adequate rainfall to boost harvest and slow inflation, even as the weather office predicts monsoon rain will be below normal for the second time in three years. Reserve Bank of India Deputy Governor Subir Gokarn said yesterday food inflation remains “uncomfortably high” and that farm output needs to rise. (Bloomberg)

Taiwan: Industrial output growth unexpectedly accelerates
Taiwan‟s industrial production unexpectedly climbed at a faster pace in May, increasing the scope for an interest-rate increase next week. Output advanced 7.82% from a year earlier, after gaining a revised 7.18% in April, the Ministry of Economic Affairs said in Taipei yesterday. Taiwan‟s government predicts exports will increase almost 16% in 2011, overcoming trade disruptions from Japan‟s earthquake and contributing to economic growth of about 5%. (Bloomberg)

EU: Services, manufacturing weaken more than forecast
European services and manufacturing growth slowed more than economists forecast in June, adding to signs that the economy is losing some momentum. A composite index based on a survey of euro-area purchasing managers in both industries fell to 53.6 from 55.8 in May, London-based Markit Economics said yesterday. A reading above 50 indicates growth. Output growth weakened to the slowest in almost two years. (Bloomberg)

EU: Greece’s additional budget cuts said to be backed by EU, IMF
Measures proposed by the Greek government to complete a EUR78bn (USD111bn) austerity package required to win a bailout were endorsed by officials from the European Union and the International Monetary Fund, said a person familiar with the matter. Greek lawmakers must approve the measures in a vote next week, a condition for receiving a fifth loan payment under an existing EU-led bailout and for future financing. Failure to secure aid would push Greece to the brink of default, with the country needing the funds to cover EUR6.6bn of maturing bonds in August. (Bloomberg)

US: Jobless claims increase, confidence declines
More Americans than forecast filed first-time jobless claims last week and consumer confidence fell, highlighting Federal Reserve Chairman Ben S. Bernanke‟s concern that the slowdown in the economy may persist. Applications for unemployment benefits increased 9,000 in the week ended 18 June to 429,000, Labor Department figures showed yesterday. The level of claims exceeded the highest estimate in a Bloomberg News survey in which the median projection called for 415,000 filings. The Bloomberg Consumer Comfort Index dropped to minus 44.9 last week from minus 44. (Bloomberg)

U.S: Purchases of new houses fell in May for the first time in three months, showing the industry is struggling to gain momentum. Sales dropped 2.1% to a 319,000 annual pace last month, figures from the Commerce Department showed today in Washington. (Source: Bloomberg)

No comments: