The consumer is coming back. Manufacturers are seeing the pick-up in spending growth as reason to expand production
NEW YORK/LONDON — Manufacturing in China and the United States grew this month at the fastest pace in about two years while data suggesting German growth picked up boosted hopes for a swifter eurozone recovery.
The euro-area economy expanded more than forecast in the final quarter of 2013, led by Germany and France, easing pressure on the European Central Bank to take action next month to counter low inflation and spur growth.
Gross domestic product in the eurozone rose 0.3% after a 0.1% increase in the third quarter, the European Union’s statistics office in Luxembourg said Friday. That beats the median forecast of 0.2% in a Bloomberg News survey of 41 economists.
Tokyo (AFP) - The Bank of Japan on Thursday stuck by its view that the world's number three economy was recovering, despite a contraction in the second quarter that underlined the damage inflicted by an April sales tax hike.
After noting the role of health care spending in producing the largest negative shift from first to third estimate for quarterly GDP in modern U.S. history, Jim Hamilton notes the role of falling U.S. exports as the second biggest contributor to that outcome:
Overnight, China reported its biggest trade surplus in almost five years, when November net exports hit $33.8 billion, up from $31.1 billion in October, and 50% above the $21.2 billion consensus estimate. This was driven by a surge in exports which rose by 12.7% (more than the 7% expected), while imports rose by a slightly disappointing (5.3% vs Exp. 7.0%).
WASHINGTON — The U.S. economy unexpectedly contracted in the fourth quarter, suffering its first decline since the 2007-09 recession as businesses scaled back on restocking and government spending plunged.
Gross domestic product fell at a 0.1% annual rate after growing at a 3.1% clip in the third quarter, the Commerce Department said on Wednesday.
That was the worst performance since the second quarter of 2009, when the recession ended, and showed the economy entering the new year with no momentum.