Tuesday, March 30, 2010

20100330 1009 Global Economic News.

US consumer spending rose in February for a fifth consecutive month, a rebound that will require gains in employment to be sustained. Personal consumption expenditures (PCE) increased US$34.7bn or 0.3% (US$38.5bn or 0.4% in Jan), matching market estimates. US personal income increased US$1.2bn or less than 0.1% in February (US$30.4bn or 0.3% in Jan), and disposable personal income increased US$1.6bn or less than 0.1% (US$26bn or 0.2% in Jan), according to the Bureau of Economic Analysis. (Xinhua)

The US economy looks set to return to relatively rapid growth soon, International Monetary Fund (IMF) chief Dominique Strauss-Kahn said. "It's a flexible economy. We'll see how rapid the recovery in the US economy can be. But I'm rather confident that the US economy will grow rather rapidly again quite soon," he added. (Channel News Asia)

The US Treasury Department Monday confirmed its plan to sell all of its approximately 7.7bn shares of Citigroup stock over the course of 2010. The Treasury said it will initiate its disposition of the shares pursuant to a pre-arranged written trading plan, and assured that it will sell its Citigroup common shares into the market through various means in an orderly and measured fashion. (Xinhua)

European confidence in the economic outlook improved to the highest in almost two years in March, beating economists’ forecasts and signaling the recovery is gathering strength as a weaker euro helps exporters. An index of executive and consumer sentiment in the 16 nations using the euro rose to 97.7 from 95.9 in February. Economists forecast it would increase to 97.1. (Bloomberg)

Australia’s central bank said home-loan rates rising faster than its benchmark interest rate were part of its policy “deliberations,” suggesting fewer increases may be required to return borrowing costs to normal levels. “The cash rate determined by the Reserve Bank is still the major determinant of the interest rate structure in Australia, including that of mortgage rates,” Assistant Governor Guy Debelle said. (Bloomberg)

Japan’s retail sales rose 4.2% yoy in February (2.3% in Jan), marking the biggest monthly jump since 1997 and signaling that a drop in the unemployment rate is feeding through to higher household spending. The growth was well above the economists’ forecast for a 1.6% yoy gain. (Bloomberg)

South Korea’s current account
swung back to surplus last month as energy imports declined and fewer people traveled overseas. The current-account surplus was US$158m in February (-US$631m in Jan). The figure will climb to about US$1.5bn in March, helped by an increase in the trade goods surplus, bank official Lee Young Bog said. (Bloomberg)

South Korean manufacturers’ confidence rose from 101 to 105 in April, marking the highest level in more than seven years as the nation’s economic recovery strengthens. A measure of non-manufacturing companies’ expectations fell to 88 from 91. (Bloomberg)

China’s National Social Security Fund (NSSF) plans to increase its investment in the US and European Union (EU), Dai Xianglong, the head of the pension fund said. This is in order to reap higher returns, even though it expects the yuan to rise in the long term. The dollar would remain a key global currency and expressed confidence that the eurozone’s sovereign debt strains would not escalate, he noted. (Financial Daily)

Thailand’s Finance Ministry raised its economic growth forecast for this year as the nation’s economic recovery gains momentum, buoyed by rising exports and public spending. Gross domestic product (GDP) is projected to expand 4.0-5.0% in 2010, with a mid-point forecast of 4.5%. The ministry in December predicted growth of 3.0-4.0% this year, with 3.5% as the mid-point of the range. (Bloomberg)

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