Macroeconomic News

01.12.2006 21:45 The Institute for Supply Management factory index fell to 49.5 from 51.2 in the prior month Manufacturing in the U. S. unexpectedly shrank last month for the first time in more than three years, dimming prospects for an economy that is already slowing because of a housing downturn. The Institute for Supply Management factory index (ISM index) fell to 49.5, from 51.2 in the prior month. A reading below 50 signals contraction in an industry that accounts for 12 percent of gross domestic product. ISM sub-indexes tracking production and new orders also declined along with employment. Prices climbed. Construction spending dropped by the most in five years in October, sliding 1 percent, the Commerce Department said in Washington today. 30.11.2006 21:14 Industrial production in Japan unexpectedly increased 1,6% in October 2006 Industrial production in Japan unexpectedly rose in October 2006, backing the assessment of central bank that the second-largest economy in the world is strong enough to withstand higher interest rates. Factory output climbed a seasonally adjusted 1,6% from a month earlier, the Ministry of Economy, Trade and Industry said in Tokyo today. Gains were led by autos and semiconductors as production rose 7,4% from a year earlier, the biggest jump in more than two years.

29.11.2006 21:40 U. S. GDP growth revised higher to 2.2% rate in third quarter The U. S. economy grew at a 2.2% annual pace in the third quarter, a bit faster than the 1.6% initially estimated, but down from the 2.6% in the previous quarter, the Commerce Department reported Wednesday in its first revision to the gross domestic product report. Revisions came largely from greater building of inventories and lower imports than originally assumed. Business investment also grew more than first estimated, while consumer spending was slightly slower. Final sales of domestic product increased 2.1%, up from the 1.7% originally reported. Meanwhile, a key measure of core inflation was revised a tenth of a percentage point lower, to 2.2%. Year-over-year growth in the core personal consumption expenditure price index was unrevised at 2.4%, thus remaining well above the implied target of 1% to 2%. The economy has grown 3% in the past year in real terms, just about the rate economists say is the long-term potential. In nominal terms, GDP was at an annual rate of $13.33 trillion in the third quarter. 28.11.2006 20:55 U. S. economy will not dent the recovery that is gathering pace in Europe U. S. economy will not dent the recovery that is gathering pace in Europe, the OECD said Tuesday. The 12-nation euro zone will post 2,6% growth this year and 2,2% in 2007, it predicted, upgrading the previous forecasts of 2,2% and 2,1%. OECD also hiked its forecast for German GDP growth this year to 2,6% from 2,2% and its forecast for 2007 growth to 1,8% from 1,6%. It said it expects growth to pick up again to 2,1% in 2008.

The OECD cut its 2006 forecast for France to 2,1% from 2,4%. It kept its 2007 forecast at 2,2% and said it expects the French economy to grow 2,3% in 2008. 27.11.2006 21:25 The industrial production growth is likely to lend support to the GDP up 6,7% in 2006 The industrial production growth estimate for 2006 has been raised from 4.6% to 4.8%, which is likely to lend support to the GDP growth of 6.7%, the analysts of Center for Macroeconomic Analysis and Short-Term Forecasting said. Russian investment growth is likely to reach the 13.7% level in 2006, driven by the easing of the VAT regime in construction and the elimination of import duties on high-tech equipment. The industrial production growth estimate for 2007 has been raised from 4.3% to 5.0%. 26.11.2006 18:48 British GDP increased 2,7% in the third quarter of 2006, GDP of Germany grew 2,8% Britain recorded 0,7% in economic growth for the third quarter over the previous quarter and 2,7% for the year, the office for National Statistics said in its second estimate this week. Economists had expected the NS office to adhere strictly to its prior estimate, or a quarterly increase of 0,7% and a year-on-year rise of 2.8%, according to ABN Amro bank. De Statis, the German federal statistics office, says this week the GDP of Germany grew 0,6% in the third quarter of 2006.

Compared with a year earlier, the GDP in the third quarter of 2006 was up 2.8%. 25.11.2006 16:05 GDP of Russia had risen 6.8% in January-October 2006 Economics minister of Russia discussed the medium-term future of the economy at a news conference Tuesday, focusing on plans for an oil exchange, changes to the domestic gas price, inflation, and import regulations. German Gref said gross domestic product of Russia had risen 6.8% in January-October 2006, and that GDP growth from October 2005 to October 2006 was 8.2%. On inflation, the minister said the figure would not exceed the national target of 9%. "According to the current dynamics, we are keeping to the 9% inflation index," he told. 23.11.2006 21:28 US October industrial production up 0.2% The Federal Reserve Board announced November 16 that U. S. industrial production rose 0.2 percent in October after having decreased 0.6 percent in September; production in August was revised up to show a gain of 0.3 percent. Economists were expecting production to rise 0.3%. Capacity utilization rose to 82.2% from a revised 82.1% in September. Manufacturing output fell 0.2% in October, due to weak auto production. Excluding autos, manufacturing output rose 0.1%. Output of utilities jumped 4.1% in October after falling 4.6% in the previous month. 23.11.2006 21:05 Industrial new orders down by 1.3% in euro area The euro area industrial new orders index decreased by 1.3% in September 2006 compared to August 2006. The index rose by 3.8% in August and by 2.0% in July. EU25 new orders fell by 1.0% in September 2006, after rises of 2.7% in August and 1.7% in July.

Excluding ships, railway and aerospace equipment industrial new orders fell by 2.0% in the euro area and by 0.7% in the EU25 in September 2006. In September 2006 compared to September 2005, industrial new orders increased by 7.6% in the euro area and by 6.8% in the EU25. Total industry excluding ships, railway and aerospace equipment grew by 5.4% in the euro area and by 5.0% in the EU25. 22.11.2006 21:11 Japanese GDP grew 2,0% compared to the third quarter of 2005 The Japanese growth data was stronger than expected with a third-quarter GDP increase of 0.5%. Japanese GDP grew 2,0% compared to the third quarter of 2005. Despite of that, the Japanese government downgraded its assessment of the economy in a monthly report for the first time in almost two years today, as weak consumption cast a cloud over the long-lasting recovery. The Bank of Japan left interest rates unchanged at 0.25% following the latest policy meeting and failed to provide clear direction over the timing of another rate increase.