20121101 1017 Local & Global Economic Related News.

The annual growth of broad money (M3) moderated to 12.5% in Sep (13.9% in Aug). Net financing to the private sector grew 12.8% in Sep (12.6% in Aug), driven by higher issuances of private debt securities (PDS). Total outstanding loan growth slowed to 12% yoy in Sep (12.3% in Aug). (BT)

Please refer to our Economic Update for further details Producer price index (PPI) declined 1.2% mom in Sep (+0.1% mom in Aug). This was due to the decrease in the PPI for local production by 1.7% mom (+0.2% in Aug) and the import price index by 0.1% mom (-0.4% in Aug). On yoy comparison, PPI for domestic economy declined by 1.3% (+0.5% in Aug) and the local production index dropped by 2% (-0.9% in Aug) while the import price index rose by 0.4% (+0.9% in Aug). (BT)

South Korea: Inflation accelerates to highest in four months

South Korea’s inflation accelerated to a four-month high in October before the central bank’s decision on borrowing costs next week. Consumer prices increased 2.1% from a year earlier after a 2.0% gain in September, Statistics Korea said. The median estimate in a Bloomberg News survey of 17 economists was for a 2.1%. (Bloomberg)

UK: October consumer sentiment falls to six-month low
UK consumer confidence fell to a six-month low in October as Britons become more pessimistic about their finances and spending, said GfK NOP Ltd. An index of sentiment declined to minus 30 from minus 28 in September, the London-based research group said. A gauge of how consumers see their personal financial situation over the next year dropped 5 points to minus 13, also the lowest in six months. (Bloomberg)

Euro: Greece urged by Europe to overcome last hurdles to aid pact
Euro-area governments pressed Greece to make deeper spending cuts to keep aid flowing, in the latest test of wills during the three-year battle to prevent the single currency’s breakup. With Greece pleading for a EUR31bn (USD40bn) aid payout in November and facing a sixth year of recession in 2013, euro finance ministers said unfreezing loans for the country required more efforts in Athens to rein in the budget deficit and deregulate the economy. (Bloomberg)

US: Storm disrupting work for millions may slow economic growth
Atlantic superstorm Sandy may cut US economic growth as it keeps millions of employees away from work and shuts businesses from restaurants to refineries in one of the nation’s most populated and productive regions. The storm may cut output in the world’s largest economy by USD25bn in the fourth quarter, according to Gregory Daco, a US economist. (Bloomberg)

US: Wage hikes cool as US employers hold line
Employment costs rose at a slower pace in the third quarter compared with the prior three months, indicating workers have limited scope to bargain for higher wages as the US economy struggles to pick up. The employment cost index increased 0.4% following a 0.5% gain in the prior quarter, the Labour Department said. Business activity unexpectedly contracted for a second month in October, another report showed. (Bloomberg)