Singapore: Export growth eases as global slowdown hurts demand
Singapore’s export growth slowed in September as shipments of electronics and pharmaceuticals eased, heralding softening demand in the coming months as the global economy weakens. Non-oil domestic exports climbed 22.7% y-o-y, after a revised 30.8% gain in August. Electronics shipments climbed 21.2% in September y-o-y to SGD5.8bn (USD4.4bn), after a revised 34.8% gain the previous month. Non-electronics shipments, which include petrochemicals and pharmaceuticals, gained 23.7%. (Bloomberg)
Japan: Service demand declines as recovery loses momentum
Japan’s demand for services fell for the first time in three months in August, adding to signs of a weakening recovery. The tertiary index fell 0.2% from July, when it rose 1.6%, supporting Prime Minister Naoto Kan’s case for compiling a second economic package as the yen approaches a record high against the dollar which threatens Japan’s export-reliant recovery. Kan’s cabinet this month endorsed a JPY5.1trn (USD63bn) stimulus plan to safeguard the economy and help local governments and small businesses cope with the surging yen as consumer spending, which accounts for more than half of economy, remains sluggish. (Bloomberg)
Brazil: Taxes raised on some foreign inflows to 6%
Brazil raised taxes on foreign investments in fixed-income securities for the second time in a month, and Finance Minister Guido Mantega said countries trying to defend exports must end the “currency war.” The socalled IOF tax on foreign inflows will climb to 6% from 4%. The tax on foreign investors’ margin deposits for futures markets will also climb to 6% from 0.38%.The moves aim to curb foreigners’ appetite for short-term investments and curb the dollar inflows that have contributed to the real’s 7.1% gain in the past three months. (Bloomberg)
US: Production decreased in September
Production in the US unexpectedly dropped in September for the first time in more than a year. Output at factories, mines and utilities fell 0.2%, the first decline since the recession ended in June 2009. Slackening production means it will take longer for the economy to make a dent in the excess capacity that is containing prices. Factory production decreased 0.2%, the first drop since June, reflecting a 0.9% fall in consumer durables, like appliances and furniture. Output of motor vehicles and technology equipment, including computers and semiconductors, rose. The latter signals business investment in new equipment was still growing. (Bloomberg)
US: Homebuilder confidence rises to four-month high
Confidence among US homebuilders rose in October to the highest level in four months, a sign residential construction is stabilizing at depressed levels. The National Association of Home Builders/Wells Fargo confidence index increased to 16, beating estimates of a rise to 14. Index readings lower than 50 mean more respondents said conditions were poor. The measure reached a record low of 8 in Jan 2009 and averaged 54 in the five years before the recession began in Dec 2007. (Bloomberg)
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