Economy Highlights

US - Wholesale inventories increase 1.1%, sales climb 3.4%

Inventories at US wholesalers rose more than forecast in January as distributors tried to keep pace with sales that rose by the most since November 2009. The 1.1% increase in stockpiles followed a revised 1.3% gain in December that was bigger than initially estimated, the Commerce Department said. The median projection in a Bloomberg News survey was for a 0.9% rise. Sales jumped 3.4% in January, led by cars, computers and commodities. (Bloomberg)


UK - Trade gap narrows more than forecast on record exports

UK trade deficit narrowed more than economists forecast in January as exports surged to a record and imports of aircraft declined. The goods-trade gap shrank to GBP 7.06bn (USD 11.4bn) from a record GBP 9.69bn in December, the Office for National Statistics said. The deficit is the smallest in 11 months and compared with the GBP 8.5bn median forecast of 17 economists in a Bloomberg News survey. Exports rose 5.4% and imports fell 4%. (Bloomberg)


EU - German industrial output rose in January as construction surged

Industrial production in Germany, Europe’s largest economy, rose in January as construction activity rebounded from its winter hiatus. Output increased 1.8% from December, when it slipped a revised 0.6%, the Economy Ministry in Berlin said. Economists had forecast a 1.7% gain, the median of 35 estimates in a Bloomberg News survey showed. In the year, production rose 12.5% when adjusted for working days. (Bloomberg)


Singapore - Inflation to hit 4% in 2011

Singapore’s inflation could hit 4% this year, the highest level since 2008 and at the upper end of an official forecast range of 3%-4%, according to the central bank’s quarterly survey of economic forecasts. The Monetary Authority of Singapore (MAS) said the median estimate of 20 private sector economists also showed inflation could hit 5.4% in the first quarter. Singapore’s annual inflation spiked up to 5.5% in January, far higher than analysts’ expectation. (Financial Daily)


Asia - Steps up inflation fight as Thailand, Vietnam raise rates

Asian central banks stepped up their battle against inflation as Thailand and Vietnam raised interest rates, seeking to defuse price pressures before the global jump in oil costs reverberates through the region. The Bank of Thailand increased the one-day bond repurchase rate by a quarter of a percentage point to 2.5%, it said. Vietnam lifted borrowing costs, South Korea is forecast to do so and Malaysia may ask lenders to set aside more money as reserves on Mar 11. A jump in crude oil costs in excess of 20% in the past three weeks is escalating the danger of inflation in the region that’s led the global economic rebound. (Bloomberg)