20100727 0926 Global Economic News.

Japan: Export growth slackens
Japanese exports continued to rise in June on shipments to Asia but the pace of growth was the slowest this year amid signs that recovery may be losing steam as global demand falls. "We previously saw a robust, Vshaped recovery in exports after the financial crisis. Now the speed of the recovery is tapering off," said Atsushi Kamio, economist at the Daiwa Research Institute. (BT)

US: Home sales recover strongly
Sales of new US single-family homes rebounded strongly in June from the prior month's record low, driving the number of houses on the market to its lowest level in nearly 42 years. Sales jumped 23.6% to a 330,000 unit annual rate from a downwardly revised 267,000 units in May. (BT)

Singapore: Factory output rises at slowest pace in four months
Singapore’s industrial production rose at the slowest pace in four months in June as pharmaceutical and electronic manufacturers made fewer goods, suggesting demand may ease as the global recovery cools. Output at factories, which accounts for about a quarter of the economy, climbed 26.1% in June from a year earlier, after a revised 58.4% surge in May. (Bloomberg)

South Korea: Construction shrinks as economy grows
South Korea’s construction industry had its biggest annual contraction since at least 2008 in the second quarter, deepening a dilemma for policy makers faced at the same time with a sustained expansion in the broader economy. Construction shrank 0.8% over the three months through June compared with the prior quarter, the third drop in four quarters, and 0.5% from a year ago (Bloomberg)

India: May raise rates as higher prices spark protests
India’s central bank is likely to raise interest rates for the fourth time since March after a strike to protest rising prices brought much of the nation to a halt this month. The Reserve Bank of India will probably increase its reverse repurchase rate by a quarter-point to 4.25%. (Bloomberg)

Australian: Inflation probably quickened, stoking rates pressure
Australia’s annual inflation rate probably accelerated above the top of the central bank’s target range last quarter, increasing pressure on policy makers to boost borrowing costs during a federal election campaign. The consumer price index rose 1% in the quarter for an annual gain of 3.4%. (Bloomberg)

Global: Economy may slow to 3.25% from 4.7% average
The new normal for the world economy may be arriving as the US, Europe and China all decelerate simultaneously. After policy stimulus and inventory-rebuilding pulled the major economies out of recession with 5% growth in the first quarter, they are slouching toward a weaker expansion, even as they show signs of dodging a double-dip. Global growth may average 3.25% to 3.5% in the next three to five years. (Bloomberg)