The government has projected 5.0-6.0% GDP growth this year, PM Datuk Seri Najib Tun Razak said Thursday. "However, we feel the growth is more towards nearing 5.0% from 6.0% given the current uncertain economic climate," said Najib.
• "It's very difficult for us to make assumptions based on one figure alone. We've decided that the range will be between 5% and 6%. We're still maintaining the target," he said.
• On inflation, Najib said that it was still manageable, with latest figures showing there was a slight decline.
• He said measures being taken such as reducing chicken price have had an impact in efforts to control the inflation rate in the country.
• On deficit target, Najib said the government's commitment to reduce the deficit from 5.6% to 5.4% was on track. (Bernama)
Income tax was deducted from the half-month bonus for civil servants on 15 Aug to ease their burden when calculating and settling it later, explained Inland Revenue Board (IRB) Public Relations Officer Noorhelmi Azrul Mohd Nor. "The bonus is like any supplemental payment or incentive which is subject to tax. The amount deducted was based on IRB's calculation formula,” she said. (Bernama)
The government is in the process of amending the Weights and Measures Act 1972 to calibrate water and electric meters to avoid inconveniencing the people. Domestic Trade, Cooperative and Consumerism Minister Datuk Seri Ismail Sabri Yaakob, said under the proposed amendment, the ministry's officers would be empowered to check the meters every year. "I believe we could issue the new regulation by early next year,” he said. (Bernama)
Japan: Exports fall more-than-expected 3.3% as Yen advances
Japan’s exports fell more than expected in July as a global slowdown and a strengthening currency weigh on the outlook for the nation’s sales overseas. Exports decreased 3.3% in July from a year earlier, the Finance Ministry said yesterday. Shipments rose 0.8% in July from June on a seasonally adjusted basis. The yen’s 6% advance against the dollar in the past three months may weigh on overseas sales at a time when demand from major markets such as China and the US is faltering. (Bloomberg)
Taiwan: GDP rose at slowest pace since ’09, cuts outlook
Taiwan’s economy grew at the slowest pace since 2009 last quarter and the government cut its growth and inflation forecasts, as faltering recoveries in the U.S. and Europe cloud the outlook for Asia. GDP rose 5.02% in the three months through June from a year earlier, compared with a 6.16% climb in the first quarter, the statistics bureau said in revised estimates released yesterday. Its preliminary second-quarter assessment last month was 4.88%. (Bloomberg)
Euro: Construction output falls on declines in Germany, France
European construction output dropped for the first time in three months in June, led by declines in Germany and France. Construction in the 17-nation euro region fell 1.8% from May, when it rose a revised 0.1%, the European Union’s statistics office said yesterday. From a year earlier, output plunged 11.3%. In Germany, Europe’s largest economy, construction dropped 4.5% in June after a 0.2% decrease in the prior month, according to yesterday’s report. French building retreated 0.1% after a 0.8% drop in May. (Bloomberg)
UK: Retail sales rise less than forecast on clothing demand
UK retail sales rose less than economists forecast in July as demand at clothes and household- goods stores dropped. Sales including fuel rose 0.2% from June, when they increased a revised 0.8%, the Office for National Statistics said yesterday. On the year, sales were unchanged. Asda, the UK unit of Wal-Mart Stores Inc., said on 16 Aug that sales growth slowed in the second quarter as fewer shoppers visited its stores because of higher fuel prices. (Bloomberg)
US: Consumer prices climb, manufacturing falters
The cost of living in the U.S. climbed more than forecast in July, which could make it harder for Federal Reserve Chairman Ben S. Bernanke to convince colleagues to immediately act to spur growth after manufacturing in the Philadelphia region plunged in August. The consumer-price index increased 0.5% from June figures from the Labor Department showed yesterday in Washington. The Philadelphia Fed’s general economic index dropped to minus 30.7 this month, the lowest since March 2009, when the economy was in a recession. (Bloomberg)
US: Existing home sales unexpectedly decreased in July
Sales of U.S. previously owned homes unexpectedly dropped in July, reflecting an increase in contract cancellations due to strict lending rules and low appraisals. Purchases decreased 3.5% to a 4.67m annual rate, the weakest since November, figures from the National Association of Realtors showed yesterday. The median price dropped 4.4% from a year earlier, and 16% of real estate agents polled said they had at least one pending contract canceled last month. (Bloomberg)
US: Jobless claims rose more than forecast last week
More Americans than forecast filed applications for unemployment benefits last week, signaling the labor market is struggling two years into the economic recovery. Jobless claims climbed by 9,000 to 408,000 in the week ended 13 Aug, the highest in a month, Labor Department figures showed today in Washington. The number of people on unemployment benefit rolls rose, while those receiving extended payments fell. (Bloomberg)
US stocks tumble on global economy, European funding concerns
US stocks tumbled, sending the Dow Jones Industrial Average down more than 400 points for the fourth time this month, on concern the global economy is slowing and speculation that European banks lack enough capital.
Caterpillar Inc and FedEx Corp fell at least 4.9%, pacing losses in stocks most-tied to the economy, as a Philadelphia-area manufacturing index sank to the lowest since 2009, jobless claims and consumer prices rose, and existing home sales slid. Bank of America and Citigroup fell more than 6%, following a plunge in European lenders. Hewlett- Packard sank 6% after cutting its earnings forecast. The S&P 500 Index slumped 4.5% at 4pm in New York. All 10 groups in the S&P 500 dropped at least 1.2%, and only 10 stocks in the benchmark gauge advanced. The Dow fell 419.63 points, or 3.7%, to 10,990.58 (Bloomberg)
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