20110328 0941 Local & Global Economic Related News.

Malaysia: Inflation quickens to 22-month high, pressuring rates
Malaysia’s inflation accelerated to a 22-month high, putting pressure on the central bank to resume raising interest rates. Consumer prices rose 2.9% in February from a year earlier, according to a report by the statistics department that compares with the 2.7% median estimate in a Bloomberg News survey of 17 economists. Malaysia’s inflation is set to accelerate and the economy may expand as much as 6% this year, the central bank said, signaling it would move to counter rising prices and “financial imbalances.” Asian policy makers from India to the Philippines have raised borrowing costs this month as oil and food costs surge. (Bloomberg)

Singapore: Production growth slows, missing economist forecasts
Singapore’s industrial production growth slowed more than economists estimated last month as the increase in electronics manufacturing eased and pharmaceutical output declined. Manufacturing, which accounts for about a quarter of the economy, climbed 4.8% in February from a year earlier after a revised 11% increase in January, the Economic Development Board said. The median estimate of 16 economists surveyed by Bloomberg News was for a 6.2% gain. Singapore’s export growth slumped in February after the Lunar New Year holidays curbed demand from China for manufactured parts, and overseas sales are set to ease this year as the global economic rebound cools. The biggest Japanese earthquake on record, with its ensuing tsunami and nuclear plant crisis, may further damp shipments. (Bloomberg)

Japan:Consumer prices fell in February, may rise after quake
Japan’s deflation moderated in February even before the country’s worst earthquake on record and an ensuing tsunami and nuclear crisis this month push up energy and food costs. Consumer prices excluding fresh food declined 0.3% from a year earlier, the statistics bureau said, matching the median estimate of 23 economists surveyed by Bloomberg News. (Bloomberg)

EU: Cuts future aid fund’s startup capital on German demands
European Union leaders cut the startup capital for the future euro emergency aid mechanism after German demands to make smaller upfront payments stoked fresh concerns about Europe’s effort to quell the debt crisis. As speculation swirled that Portugal will be the next victim of the crisis, the leaders bowed to German Chancellor Angela Merkel’s call to pare the fund’s paid-in capital as of 2013 to EUR 16bn (USD23bn), less than the EUR 40bn foreseen in a 21 March accord. (Bloomberg)

US: Economy grew 3.1% in fourth quarter, revised from 2.8%
The US economy grew at a 3.1% annual rate in the fourth quarter, led by a jump in consumer spending that will be hard to match early in the year as energy prices surge. The revised increase in GDP compares with a 2.8% estimate issued last month, figures from the Commerce Department showed. Earnings at financial firms led a 2.3% increase in corporate profits from October to December that capped the biggest annual gain in six decades. (Bloomberg)

US:Unemployment fell in 27 US states in February, labor says
Unemployment decreased in 27 US states in February, suggesting a strengthening labor market. The jobless rate fell the most in Nevada, where it reached 13.6%, figures from the Labor Department showed. Thirty-five states showed gains in payrolls, led by California with a 96,500 increase and Pennsylvania where employment climbed by 23,700. The report is consistent with 4 March government figures showing nationwide unemployment in February fell to 8.9% as employers added 192,000 workers. Broader payroll gains are needed to bolster consumer spending, the biggest part of the US economy. (Bloomberg)

U.S: Consumer sentiment dropped more than forecast in March, damped by higher gasoline costs and the effects of Japan's natural disaster. The Thomson Reuters/University of Michigan final index of consumer sentiment decreased to 67.5, the lowest level since November 2009, from 77.5 in February, the group said. (Source: Bloomberg)

France: GDP accelerated more than originally estimated in the fourth quarter, led by road transport services as import growth weakened. The economy expanded 0.4% from the third quarter, when it grew 0.2%, national statistics office Insee in Paris said. It had previously estimated an expansion of 0.3% in that period. In 2010, GDP rose1.5%, in line with a previous estimate. (Source: Bloomberg)

S. Korea: Consumer confidence fell to the lowest level in almost two years, damped by Japan's strongest earthquake and political unrest in the Middle East. Retailers' stocks dropped in Seoul trading. The sentiment index declined to 98 in March from 105 in February, the fourth monthly drop, the Bank of Korea said in an emailed statement. A number below 100 indicates pessimists outnumber optimists. (Source: Bloomberg)