20121206 1007 Global Economy Related News.

South Korea: Reduces estimate of third quarter expansion to 0.1%
South Korea’s economy grew less in the third quarter than the central bank initially estimated, evidence that signs of a rebound are tenuous ahead of next week’s decision on interest rates. GDP expanded 0.1% during the three months through September from the previous quarter, compared with an October estimate of 0.2%, Bank of Korea data showed. The economy expanded 1.5% from a year earlier, also less than the bank’s October forecast. (Bloomberg)

UK: Services barely grow as contraction risk looms
UK services growth unexpectedly slowed in November as demand fell for the first time in two years, increasing the chance the economy will shrink again this quarter. A gauge fell to 50.2, the lowest in 23 months, from 50.6 in October, Markit Economics and the Chartered Institute of Purchasing and Supply said. The reading is barely above the 50 line that divides contraction and expansion. (Bloomberg)

EU: Manufacturing, services contract for 10th month
Euro-area services and manufacturing output shrank for a 10th month in November, suggesting the economy may struggle to pull out of a recession as governments toughen spending cuts to fight the sovereign-debt crisis. A composite index based on a survey of purchasing managers in both industries rose to 46.5 from 45.7, London-based Markit Economics said. That’s above an initial estimate of 45.8 published on 22 Nov. A reading below 50 indicates contraction. (Bloomberg)

US: Services in US unexpectedly grow at faster pace
Service industries in the US unexpectedly grew at a faster pace in November, showing the biggest part of the economy is weathering concern about looming federal tax increases and spending cuts. The Institute for Supply Management’s non-manufacturing index rose to 54.7 last month from 54.2 in October, the Tempe, Arizona-based group said. Economists projected a decline to 53.5, according to the median estimate in a Bloomberg survey. Readings above 50 signal expansion. (Bloomberg)

US: Gain in US capital equipment orders exceeds prior estimate
Orders for equipment such as computers and electrical gear climbed in October by the most in eight months, indicating US manufacturing is stabilizing heading into the looming fiscal cliff. Bookings for non-defence capital goods excluding aircraft, a proxy for future spending, rose a revised 2.9% after dropping 0.5% in September, the Commerce Department reported. The gain was previously estimated at 1.7%, according to last week’s durable-goods report. (Bloomberg)