Wednesday, August 1, 2012

20120801 1006 Global Economy Related News.

U.S: Consumer spending stagnates as Americans save more. Household purchases, which make up 70% of the economy, were unchanged in June after a 0.1% MoM decline in May. Incomes climbed 0.5% MoM, lifting the saving rate to 4.4%, the highest in a year. (Source: Bloomberg)

U.S: Business activity unexpectedly grows at faster pace in July as the economy weathered a slowdown in hiring and household spending. A barometer from the Institute for Supply Management-Chicago Inc. increased to 53.7, the highest since April from 52.9 in June. Readings greater than 50 signal growth. (Source: Bloomberg)

U.S: Home prices fell less than forecast in year to May. The S&P/Case-Shiller index of property values in 20 cities decreased 0.7% YoY from May 2011, the smallest 12-month fall since September 2010, after dropping 1.8% YoY in the year ended April. (Source: Bloomberg)

U.S: Consumer confidence unexpectedly climbed in July. The Conference Board's index increased to 65.9 this month from 62.7 in June. The report showed a gain in the share of consumers anticipating better labor and economic conditions in six months. (Source: Bloomberg)

U.S: Congress leaders and Obama agree on six-month spending bill. Congressional leaders said they and President Barack Obama have agreed on a USD 1.047t plan to fund the U.S. government from October through March. Lawmakers will vote on the measure in September, Senate Majority Leader Harry Reid, a Nevada Democrat, told reporters in Washington. "This agreement reached between the Senate, the House and the White House provides stability for the coming months, when we will have to resolve critical issues that directly affect middle class families," Reid said. (Source: Bloomberg)

E.U: The jobless rate in the euro area reached the highest on record as the festering debt crisis and deepening economic slump prompted companies to cut jobs. Unemployment in the economy of the 17 nations using the
euro held at 11.2% in June, the European Union's statistics office in Luxembourg said. That's the highest since the data series started in 1995. (Source: Bloomberg)

Germany: Retail sales unexpectedly declined for a third month in June amid uncertainty about the consequences of Europe's debt crisis. Sales, adjusted for inflation and seasonal swings, fell 0.1% MoM from May, when they slipped 0.3% MoM, the Federal Statistics Office in Wiesbaden said. That's the longest stretch of declines since the end of 2007, when they dropped four consecutive months. Sales rose 2.9% YoY. (Source: Bloomberg)

China: Pledges to ensure stable growth as local loans may rise. China's leaders pledged to keep adjusting policies to ensure stable economic growth this year as a state newspaper said some banks are telling branches to provide local-government loans. "The ongoing pace of economic growth is within expectations, but the external environment remains grim and poses difficulties and challenges," the official Xinhua News Agency said, citing a meeting of the Communist Party's Politburo. The meeting also determined that maintaining stable growth is still the top priority, Xinhua said. (Source: Bloomberg)

India: The Reserve Bank of India kept the repurchase rate at 8% while reducing the amount of deposits banks must hold in government bonds. Governor Duvvuri Subbarao said after the decision that the benchmark gauge of prices, which climbed 7.25% YoY in June, has stayed "sticky." (Source: Bloomberg)

S. Korea: Inflation moderated to slowest in 12 years in July. Consumer prices increased 1.5% YoY after a 2.2% YoY gain in June. Prices fell 0.2% MoM from the previous month. (Source: Bloomberg)

Taiwan: GDP fell 0.16% YoY in 2Q12, according to preliminary data released by the statistics bureau in Taipei. (Source: Bloomberg)

Singapore: Unemployment rate unexpectedly fell last quarter as construction companies and manufacturers increased hiring even as the economy contracted. The seasonally adjusted jobless rate fell to 2% in the three months through June from 2.1% the previous quarter, the Ministry of Manpower said in a statement. The economy added 29,200 jobs last quarter, compared with 27,200 in the previous period. (Source: Bloomberg)      

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