20101027 0949 Local & Global Economics News.

Malaysia: Household debt not a worry, says Zeti
Going forward, Malaysia will implement measures to ensure it will not be a destabilising factor for the economy, says Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz. “Bank Negara Malaysia is not concerned about rising household debt as the level of bad loans is still low and there are various ways to keep it in check”, she mentioned. The Malaysian Institute of Economic Research had noted that household debt had risen to 77% of GDP last year, the highest in Asia, from 63.9% in 2008. (BT)

Singapore: Industrial output growth accelerated in September
Singapore’s industrial production rose at the fastest pace in three months, an advance that may ease as a slowdown in world economic growth hurts demand for electronics and pharmaceuticals. Manufacturing, which accounts for about a quarter of the economy, climbed 26.2% in September from a year earlier, after a revised 7.7% increase in August, the Economic Development Board said. The median estimate of 17 economists surveyed was for a 19% gain. (Bloomberg)

South Korea: Economic growth slowed to 0.7% as Won jumped
South Korea’s economic expansion slowed in the third quarter as the nation’s surging currency threatened exports and global growth cooled, signaling more room for the central bank to pause interest-rate increases. Gross domestic product advanced 0.7% from the previous three months, when it gained 1.4%, the central bank said. That was less than the 0.8% median forecast in a survey of 10 economists. From a year earlier, GDP rose 4.5%. (Bloomberg)

UK: Growth sustains surprise momentum as S&P spares AAA grade
The UK economy grew more than forecast in the third quarter and Standard & Poor’s said the nation no longer faces the risk of downgrade as pressure eases on the Bank of England to add more stimulus. S&P restored its outlook on Britain’s credit rating to “stable” from “negative” after warning in May last year that the nation’s top AAA grade was at risk. Gross domestic product rose 0.8% in the quarter through September after climbing 1.2% in the previous three months, the Office for National Statistics said. (Bloomberg)

UK: GDP probably slowed; BOE keeps ‘fingers crossed’
Britain’s economic growth probably slowed in the three months through September to a third of the pace of the previous quarter, keeping pressure on policy makers to consider adding stimulus. Gross domestic product rose 0.4% in the period, compared with a 1.2% increase in the second quarter, according to the median forecast in a survey of 35 economists. (Bloomberg)

US: Confidence increases more than forecast
Confidence among US consumers rose in October from a seven-month low as households turned less pessimistic on the outlook for the economic recovery. The Conference Board’s sentiment index climbed to 50.2, exceeding the median forecast in a survey, from a revised 48.6 in September. Another report showed homeprice gains receded in August after a tax credit lapsed. (Bloomberg)