20100906 1428 Global Ecnonomics News.

Japan: May raise GDP estimate as spending drop eased
Japan’s economy probably grew more than three times the government’s initial estimate, economists said after a report showed companies cut spending at the slowest pace since 2007 as a result of strong overseas demand. GDP expanded 1.5% on an annualized basis last quarter, compared with a preliminary reading of 0.4%, according to the median forecast of 16 economists surveyed by Bloomberg News. (Bloomberg)

China: Home prices to fall from this month, BNP says
China’s home prices will decline from this month as the government maintains its lending curbs and increases the supply of public housing, forcing property developers to cut prices to boost sales, BNP Paribas said. “Although the government has not quantified its target, it has indicated that it wants to see a housing-price correction take place in order to meet or partly meet public expectations.” (Bloomberg)

Australia: May extend rate pause on global growth concern
Australia’s central bank may keep its benchmark interest rate unchanged for a fourth month to support the nation’s economy as concerns deepen that recoveries may be faltering in the US, Japan and Europe. Reserve Bank of Australia Governor Glenn Stevens and his board will leave the overnight cash rate target at 4.5% in Adelaide, according to all 25 economists surveyed by Bloomberg News. (Bloomberg)

US: Trade deficit probably narrowed in July
The trade deficit probably narrowed in July as a slowing economy prompted Americans to buy fewer goods from abroad, economists said before a government report this week. The gap between imports and exports decreased to USD47bn from USD49.9bn the prior month, according to the median of 60 estimates in a Bloomberg News survey ahead of the Commerce Department’s 9 Sept report. (Bloomberg)

Global: ‘Modest recovery’ underway for economy
John Lipsky, the second-ranking official at the International Monetary Fund, said Group of 20 nations deputies showed confidence about the global economic recovery, even taking into account challenges and risks. “They’re mainly confident that there’s a moderate recovery under way globally,” Lipsky said after a G-20 deputies’ meeting. "There are “obviously risks and challenges but things seem to be moving more or less in the line with our forecasts.” (Bloomberg)

U.S: Recession concerns ease on addition of private jobs in August . Private payrolls climbed 67,000 after a revised 107,000 increase in July that was more than initially estimated. The unemployment rate rose to 9.6% as more people looked for work. (Source: Bloomberg)

U.S: Service companies expand less than forecast in August . The Institute for Supply Management's index of non-manufacturing businesses, which covers about 90% of the economy, fell to 51.5 from 54.3 in July. Readings above 50 signal growth. (Source: Bloomberg)

S. Korea: Economy expanded at almost the same pace in 2Q10 as initially estimated. GDP grew 1.4% QoQ over the three months to June from the first quarter, compared with a July estimate of 1.5% QoQ, the Bank of Korea said. The economy grew 7.2% YoY, matching the earlier estimate. (Source: Bloomberg)

Indonesia: Raises banks' reserve ratio, while keeping its benchmark interest rate unchanged to support growth. Lenders will be required to set aside 8% of their deposits as primary reserves from 5% previously, the central bank said. The secondary reserve requirement, comprising a combination of government bonds and Bank Indonesia certificates, was maintained at 2.5%, and the reference rate was kept at 6.5%. (Source: Bloomberg)

Australia: Services industry shrank in August at a slower pace as companies increased hiring to meet demand for communication services. The performance of services index rose 0.9 points to 47.5 from July, Commonwealth Bank of Australia and the Australian Industry Group said. A figure below 50 indicates the industry is contracting. (Source: Bloomberg)