Monday, May 3, 2010

20100503 0925 Global Economic News.

The US economy kept growing in the first three months of this year but at a much slower pace than at the end of 2009. Gross domestic product (GDP) rose at a 3.2% annual rate in 1Q10 (5.6% in 4Q09). This came slightly below economists' forecasts for a 3.3% increase. The report marked the third straight quarter of growth, confirming the view of many economists that the recession that started in December 2007 ended at some point in the middle of last year. (CNN Money)

The White House's US$787bn stimulus plan funded 682,779 jobs in the first quarter, administration officials said. The figure captures the number of people whose jobs were directly paid for with stimulus money, such as teachers, cops and road construction workers. It's based on more than 179,000 reports filed by state, local and corporate recipients. In the fourth quarter of last year the stimulus plan funded about 600,000 jobs.(CNN Money)

Business activity in the US expanded in April at the fastest pace in five years, indicating the manufacturing rebound accelerated entering the second quarter. The Institute for Supply Management-Chicago Inc. said that its business barometer rose to 63.8 this month, the highest level since April 2005, from 58.8 in March. Figures greater than 50 signal expansion. (Bloomberg)

US consumer confidence declined in April from the previous month, according to a Reuters/University of Michigan report. The final index of consumer sentiment dropped to 72.2, higher than forecast, from a reading of 73.6 in March. The gauge was projected to fall to 71 from a month earlier, according to the median forecast. (Bloomberg)

Thailand Finance Minister Korn Chatikavanij said protests that have paralyzed parts of Bangkok for the past seven weeks may reduce economic growth by as much as 2% pts this year. “If it prolongs like this for the whole year, the economy will be badly damaged,” Korn said. “It’s not necessary for us to fall into this situation. Our economy is very strong given recent economic indicators.” (Bloomberg)

Thailand’s industrial production rose for a seventh straight month in March as the global economic recovery helped boost export orders, even as prolonged political protests threaten the country’s recovery. Manufacturing output gained 32.6% yoy (30.5% in Feb), ahead of market consensus of 26%. (Bloomberg)

Chinese manufacturing expanded at a faster pace in Apr 10, highlighting overheating risks in the world’s fastest-growing major economy. The Purchasing Managers’ Index rose to a seasonally adjusted 55.7 from 55.1 in March. That was less than the median 55.9 estimate in a survey. Readings above 50 indicate an expansion. (Bloomberg)

Thailand’s industrial production rose for a seventh straight month in Mar 10 as the global economic recovery helped boost export orders, even as prolonged political protests threaten the country’s recovery. Manufacturing output gained 32.6% yoy, after a revised 30.5% gain in February. The median estimate in a survey was for a 26% increase. (Bloomberg)

Thailand’s foreign-exchange reserves rose 0.3% to US$146.7bn last week, from US$146.2bn a week earlier, the central bank said today. (Bloomberg)

Hong Kong had a more-than-forecast budget surplus of HK$25.9bn (US$3.3bn) for the fiscal year ended March 31. Financial Secretary John Tsang on Feb. 24 forecast a budget surplus of HK$13.8bn for the year through March 31, rather than the deficit he had predicted earlier, on land sales and extra government revenue from surging property and stock transactions. (Bloomberg)

China’s third increase of bank reserve ratios this year left benchmark interest rates and the yuan’s peg to the dollar unchanged, risking the need for more concerted effort to contain property prices and inflation in coming months. The requirement will increase 50 basis points effective May 10. The current level is 16.5% for the biggest banks and 14.5% for smaller ones. (Bloomberg)

Euro-region governments are betting US$146bn in economic medicine for Greece will be enough to inoculate the rest of their region from contagion. Finance ministers yesterday approved the unprecedented bailout for Greece after a week that saw the country’s fiscal crisis spread to Portugal and Spain. At the same time, they refused to say how they would help other indebted nations if the need arose, saying that Greece is a “special case.” (Bloomberg)

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