Economy Highlights

US - Pending Sales of existing homes rose 5.1% in March

The number of Americans signing contracts to buy previously owned homes rose more than forecast in March, a sign the industry that triggered the recession may begin to stabilize. The index of pending home resales climbed 5.1% after a revised 0.7% increase the prior month, the National Association of Realtors said yesterday in Washington. An improving job market, falling home prices and low borrowing costs may help to attract more buyers in coming months. At the same time, foreclosures are worsening the glut of unsold properties, one reason a sustained housing recovery is yet to develop almost two years after the end of the recession. (Bloomberg)


US - Economy growth cooled in first quarter to 1.8%

The US economy slowed more than forecast in the first quarter as government spending declined by the most since 1983 and household purchases cooled. Gross domestic product rose at a 1.8% annual rate from January through March after a 3.1% pace in the final three months of 2010, the Commerce Department said yesterday in Washington. (Bloomberg)


UK - Consumer confidence falls to lowest since 2009 recession

UK consumer confidence slumped to its weakest level since the depth of the recession in February 2009 as the government’s budget cuts began in earnest, a report by GfK NOP Ltd. showed. The index of sentiment fell to minus 31 in April from minus 28 in March, the London-based research group said in a statement yesterday. The reading is down from minus 16 a year earlier and each of the five measures that make up the gauge declined on the month. (Bloomberg)


German - Unemployment falls below 3m to 19-year low

German unemployment fell below 3m for the first time in almost 19 years in April in adjusted terms, increasing the likelihood that household spending will boost economic growth. The number of people out of work dropped a seasonally adjusted 37,000 to 2.97m; the Nuremberg-based Federal Labor Agency said yesterday, the lowest level since June 1992. The jobless rate was unchanged at 7.1%. (Bloomberg)

Japan - BOJ bets on Japan power restoration in rejecting more stimulus

The Bank of Japan raised its growth forecast for next year on optimism the economy will bounce back on reconstruction work and restored power supplies after factory output dropped by a record in March. The world’s third-largest economy will expand 2.9% in the year starting April 2012, the central bank said yesterday. It more than halved its prediction for this fiscal year to 0.6% after the 11 March earthquake. Governor Masaaki Shirakawa and his board yesterday rejected a call by one of his deputies for additional asset purchases to spur growth as they assess the effects of the central bank’s existing stimulus. (Bloomberg)