20100604 1413 Global Economic News.

U.S: Services grew in May for fifth month. The Institute for Supply Management’s index of non- manufacturing businesses, which makes up almost 90% of the economy, held at 55.4 for a third month in May. Readings above 50 signal expansion. (Source: Bloomberg)

U.S: Orders placed with factories rose 1.2% MoM in April which followed a revised 1.7% MoM gain in March. Factory shipments rose 0.6% MoM. Companies including Dow Chemical Co. and Deere & Co. are seeing increases in orders from around the world as inventories are replenished and investment in equipment picks up. Corporate and consumer spending may help the expansion withstand the European debt crisis. (Source: Bloomberg)

U.S: Jobless claims decreased by 10,000 to 453,000 last week. The number of people receiving unemployment insurance and those getting extended payments increased. (Source: Bloomberg)

E.U: Manufacturing, services growth slowed in May. A composite index based on a survey of euro-area purchasing managers in both industries fell to 56.4 from 57.3 in April. That’s above an initial estimate of 56.2 published on May 21. While the gauge for services increased, the index of new business declined. (Source: Bloomberg)

Japan: Business spending slumps for 12th quarter, signaling the export-led recovery has been slow to spread to domestic demand. Capital spending excluding software fell 12.9% YoY in the three months ended March 31 from a year earlier, after sliding 18.5% YoY in the previous quarter. (Source: Bloomberg)

S. Korea: Economy expanded more than estimated last quarter as exports and consumer spending strengthened. GDP rose 2.1% QoQ from the previous three months, compared with an April estimate of 1.8% QoQ. The economy grew 8.1% YoY, more than the previous 7.8% YoY. (Source: Bloomberg)

Indonesia: Holds interest rate as Asia watches Europe. Indonesia’s central bank, without a governor for more than a year, kept its benchmark interest rate at a record low for a 10th month, judging inflation isn’t yet a threat as Asia weighs the risk from Europe’s debt turmoil. Bank Indonesia left its policy rate unchanged at 6.5%. The measure is at its lowest level since its introduction in July 2005. (Source: Bloomberg)