Friday, July 15, 2011

20110715 1102 Global Economic Related News.

Singapore: Economy shrank last quarter as manufacturing waned
Singapore’s economy shrank for the first time in three quarters as manufacturing slumped, adding to evidence the slowdowns in Europe and the US are curbing growth in Asia. The island’s currency weakened from a record. Gross domestic product fell an annualized 7.8% in the second quarter from the previous three months, when it climbed a revised 27.2%, the trade ministry said yesterday, citing preliminary data. (Bloomberg)

China: To expand efforts to curb growth in property prices
China will expand its efforts to curb the growth in residential prices to smaller cities after limiting home purchases in Beijing and Shanghai, according to a summary of a State Council meeting chaired by Premier Wen Jiabao. The government said so-called second and third-tier cities which have seen excessive price gains should restrict the number of homes each family is allowed to buy, according to the State Council or cabinet yesterday. China is intensifying property restrictions nationwide after developers posted gains in first-half sales and housing transactions climbed 31% last month, even after more curbs were added earlier this year. The central bank last week raised interest rates for the fifth time since October. (Bloomberg)

India: Inflation quickens to 9.44%, adding to rate pressure
India’s inflation accelerated, sustaining pressure on the central bank to tighten monetary policy this month, even as price gains that were less than economists estimated boosted optimism the longest stretch of interest-rate increases in a decade is nearing an end. The benchmark wholesale-price index rose 9.44% in June from a year earlier after a 9.06% jump in May, according to the commerce ministry. Food-price inflation quickened to a three-week high of 8.31% in the week ended 2 July, the ministry said yesterday. (Bloomberg)

EURO: Inflation held steady in June as energy costs retreated
Euro-region inflation remained steady in June as energy costs retreated and a worsening debt crisis undermined economic growth. The inflation rate in the 17-nation euro region rose 2.7% from a year earlier, the same as in May, the European Union’s statistics office in Luxembourg said yesterday. That’s in line with an initial estimate published on 30 June and above the European Central Bank’s 2% limit for a seventh month. European governments are stepping up spending cuts to fight the debt crisis, which is threatening to undermine economic growth. While energy costs retreated over the past months, the European Central Bank on July 7 raised borrowing costs for a second time this year. President Jean-Claude Trichet forecast inflation rates to “likely to stay clearly” above 2%. (Bloomberg)

US: Jobless claims declined more than forecast last week
The number of Americans filing first-time claims for unemployment benefits dropped last week to the lowest level since April, a sign weakness in the labor market may be starting to abate. Applications for jobless benefits decreased 22,000 in the week ended 9 July to 405,000, Labor Department figures showed yesterday. The data included fewer layoffs in the auto industry than typical this time of the year, according to an agency spokesman. (Bloomberg)

US: Retail sales stagnate on higher unemployment
Sales at US retailers stagnated in June, highlighting weakness in consumer demand that accounts for 70% of the economy. Purchases rose 0.1%, the Commerce Department said yesterday in Washington. Sales excluding autos were little changed, the poorest performance since July 2010. Wholesale prices fell more than forecast in June on lower energy costs, the Labor Department said. Americans contending with declining home values and unemployment above 9% are holding back on spending, prompting retailers such as Target Corp to sweeten discounts. (Bloomberg)

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