U.S. Pending Home Sales Rise More Than Expected In March

4/28/2011

(RTTNews) - Pending home sales in the U.S. increased for the second consecutive month in March, according to a report released by the National Association of Realtors on Thursday, with pending sales rising by much more than economists had anticipated.
NAR said its pending home sales index rose 5.1 percent in March following a downwardly revised 0.7 percent increase in February. Economists had expected the index to increase by about 1.7 percent compared to the 2.1 percent increase originally reported for the previous month.
A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.
Despite the monthly increase, pending home sales are down by 11.4 percent compared to the same month a year ago, although NAR noted that activity was at elevated levels in March and April of 2010 to meet the contract deadline for the home buyer tax credit.
Lawrence Yun, NAR chief economist, said, "Since reaching a cyclical bottom last June, pending home sales have posted an overall gain of 24 percent and demonstrate the market is recovering on its own."
"The index means modest near-term gains in existing-home sales are likely, which would be even stronger if tight mortgage lending criteria returned to normal, safe standards," he added.
The monthly increase in pending home sales was partly due notable growth in the South, where pending home sales jumped by 10.3 percent.
Pending home sales in the West and the Midwest also rose by 3.1 percent and 3.0 percent, respectively, while pending sales in the Northeast fell by 3.2 percent.
Yun said, "Based on the current uptrend with very favorable affordability conditions, rising apartment rents and ongoing job creation, existing-home sales should rise around 5 to 10 percent this year with sales growth of lower priced homes likely to outperform high-end homes."
Last week, NAR released a report showing that existing home sales rebounded by more than expected in March after showing a steep drop in February.
The report said existing home sales rose by 3.7 percent to an annual rate of 5.10 million in March after falling by 8.9 percent to a revised 4.92 million in February. Economists had expected existing home sales to rise to 5.00 million from the 4.88 million originally reported for the previous month.

U.S. Weekly Jobless Claims Unexpectedly Rise To 3-Month High

(RTTNews) - First-time claims for unemployment benefits showed an unexpected increase in the week ended April 23rd, according to a report released by the Labor Department on Thursday, with the data likely to lead to renewed concerns about the outlook for the labor market.
The report showed that initial jobless claims rose by 25,000 to 429,000 from the previous week's revised figure of 404,000. The increase surprised economists, who had expected jobless claims to fall to 390,000 from the 403,000 originally reported for the previous week.
With the unexpected increase, weekly jobless claims rose to their highest level since coming in at 443,000 in the week ended January 22nd.
The Labor Department also said that the less volatile four-week moving average rose to 408,500 from the previous week's revised average of 399,250, climbing back above the key 400,000 level.
Peter Boockvar, equity strategist at Miller Tabak, said, "The trend over the past few weeks is clearly disappointing as signs were pointing to a more sustainable pick up in the labor market."
"It is likely though that with the growing concern with rising commodity prices as companies do their best to maintain margins combined with uncertainty for those that rely on Japan, a short term reluctance to expand is occurring," he added.
Meanwhile, continuing claims, a reading on the number of people receiving ongoing unemployment help, fell to 3.641 million in the week ended April 16th from the preceding week's revised level of 3.709 million. Extended benefits also fell by a net 76,000 in the week ended April 9th.
Next Friday, the Labor Department is scheduled to release its closely watched report on employment in the month of April. Employment increased by 216,000 jobs in March, pushing the unemployment rate down to 8.8 percent.

French Business Confidence Steadies, Industrial Demand Falls

4/22/2011

(RTTNews) - Confidence among French manufacturers remained unchanged in April, while business leaders said industrial demand has slipped during past three months.
French statistical office INSEE said the headline business confidence index for the manufacturing industry came in at 110 in April, unchanged from March. Economists had expected the reading to hold steady at previous month's original score of 109.
Confidence among retailers, construction firms and service providers improved in April. Manufacturers expect activity to slow slightly in the next three months. The production outlook index remained unchanged at 20 in April. March's score was revised down to 20 from 21 reported earlier.
Separately, a quarterly business survey by the statistical office showed that total industrial demand declined in the first three months of the year. However, the outlook remained unchanged. The index for current demand fell to 21 from 29, while that for expected demand remained unchanged at 7.
Overseas demand increased sharply, with the corresponding index rising to 36 from 26 in the fourth quarter. The outlook weakened and the index sharply fell to 16 from 23.
According to business leaders, industrial manpower continued to increase in first quarter. The corresponding balance was at its highest level for three years. The survey respondents expect a further increase in manpower in the second quarter.
Yesterday, a key survey showed that German business confidence weakened in April. Survey results from Munich-based Ifo Institute for Economic Research on Thursday showed German business sentiment falling for the second consecutive month in April, with firms turning more downbeat about the future operating conditions.
Meanwhile, a significant declined was observed in Belgian business morale after nine consecutive months of improvement, according to data from the National Bank of Belgium.
These are some of the first survey results to emerge after the European Central Bank lifted its key interest rate by 25 basis points to 1.25 percent earlier this month, after keeping it frozen at record low since July 2008.
Latest survey of Bank of France for March showed that business sentiment remained stable for the second successive. The bank had slashed the growth outlook for this quarter, while Finance Minister Christine Lagarde said last week that the ministry is cutting the forecast for next year.

Malaysia International Reserves Rise

(RTTNews) - Malaysia's international reserves rose during the period from end-March to April 15, central bank data showed Friday.
Gross international reserves of Bank Negara Malaysia were $122.205 billion on April 15, up from $113.838 billion on March 31. The reserves position is sufficient to finance 9.8 months of retained imports and is 4.7 times the short-term external debt, the central bank said.
Foreign currency reserves grew to $110.8 billion from $102.3 billion. The IMF reserve position was unchanged at $0.7 billion and SDRs held steady at $2 billion. Gold reserves were also unchanged at $1.7 billion. Other reserve assets totaled $7 billion, down from $7.1 billion.

China sees first quarterly trade deficit in seven years

4/11/2011

 China has posted its first quarterly trade deficit in seven years, as it continues efforts to rebalance its economy.

The deficit for the first three months of the year stood at $1.02bn (£622m), according to the latest data by the General Administration of Customs.
For the month of March, the country reported a tiny trade surplus of $140m.
China has been trying to boost domestic demand after criticism of its export-led growth policy over the past years.
However, demand from its key markets like the US and Europe has slowed down, as those economies recover from the effects of the global financial crisis.
China has said that it is working towards increasing domestic demand and becoming less reliant on exports to sustain its growth.
While the current numbers may suggest a step in that direction, analysts say they are not a definitive indicator of a turn-around in China's trade.
"China's exports are likely to remain strong in coming months with recovering demands in the United States and Europe, and China will report a trade surplus in coming months," said Wang Hu, of Guotai Jun'an Securities in Shanghai.

Japanese trade

There are concerns that the devastation caused by the earthquake and tsunami in Japan may hit Chinese industry.

"As the world's third largest economy and the biggest source of Chinese imports, Japan is set to affect part of China's foreign trade," said Zheng Yuesheng, statistics chief of the customs administration.
Analysts also warn that until the full extent of the damage caused to Japan's economy and businesses becomes clear, it will be difficult to predict how long the impact on other countries will last.
"People are still trying to assess the impact of Japan, so it's not easy to say whether this pace can be maintained," said Isaac Meng of BNP Paribas.
"It is likely to slow down much more in the second quarter," he added.
However, as Japan's economy and businesses look to rebuild and get back on track, analysts say that demand for Chinese goods will surge.
"From a longer-term view, the reconstruction in Japan will mean huge demand for Chinese products," Mr Wang said.
Exchange rate

 

China's policy on yuan pricing has been a topic of debate among major economies

China has been citicised over its policy on the pricing of its currency.
Beijing has been accused of keeping the yuan artificially low in order to support its export sector.
A weaker currency makes China's goods cheaper, giving its exporters an edge over their international competitors.
China has said that a sudden appreciation of its currency would be harmful to its eceonomy.
However, there has been a slight appreciation of the yuan in the last 12 months, during which it has gained more than 4% against the US dollar.
On Monday, the People's Bank of China set the price of the yuan at a historic high of 6.5401 against the US dollar.
Analysts say that as the currency appreciates, it is making imports into China cheaper and helping the government in its fight against inflation.
They add that a combination of all these factors is helping China move towards its goal of rebalancing its economic growth policy.
"Even though the exchange rate is only slowly appreciating, strong inflation, especially labour costs, is making the rebalancing happen," Mr Meng said.

German Construction Sector Expands At Record Pace In March

4/06/2011

(RTTNews) - German construction sector expanded at a record pace in March, led by a strong rise in commercial activity. The purchasing managers' index (PMI) for the sector climbed to 61.8 from 60.7 in February, Markit Economics said Wednesday. The indicator climbed at the fastest pace since the survey began in September 1999.
A reading above 50 suggests expansion of the sector. The index has now posted above the 50.0 no-change mark for three months in a row.
The acceleration in overall output growth was driven by a survey record expansion of commercial activity. Volumes of new work received increased for the third month running in March, representing the longest period of continuous expansion since the second quarter of 2006.
The robust new orders growth led to a further sharp rise in staffing levels. The rate of employment growth was the second-fastest since January 2007. Input price inflation in the construction sector accelerated for the fourth month running, due to higher costs for raw materials and energy.

Czech Trade Surplus Falls In February

 (RTTNews) - The Czech Republic's trade surplus decreased in February, official data showed Wednesday.
The trade surplus dropped to CZK 13.75 billion from an upwardly revised CZK 17.45 billion in January, the Czech Statistical Office reported. January's excess was originally reported as CZK 15.69 billion. The trade surplus was CZK 14.68 billion in the same month last year.
Exports increased at a slower annual pace in February. Shipments grew 18.4 percent year-on-year compared to 28.5 percent in the previous month. The increase was the smallest since October. Imports increased 20.5 percent after rising 29.9 percent in January.
The imports growth rate surpassed the exports growth rate for the twelfth successive month, the agency said. The results were influenced by a low comparative base of February 2010, it added.
On a seasonally adjusted basis, exports dropped 2.1 percent from the previous month, following increases in the previous two months. Imports fell 2.3 percent.
Between January-February, the trade surplus was CZK 31.2 billion, up CZK 1.2 billion over the comparable period last year. Exports grew 23.3 percent, while imports increased 25.1 percent.