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US new claims for jobless benefits fell to 4,52,000 in the
week ending October 16, a decrease of 23,000 from the
previous week's revised figure of 4,75,000.
US privately-owned housing units authorized by building
permits in September were at a seasonally adjusted
annual rate of 5,39,000, 5.6% below the revised August
rate of 5,71,000 and is 10.9% below the September 2009
estimate of 6,05,000.
US Industrial production slipped 0.2% in September
following an unrevised 0.2% gain in August. The drop in
September was below market expectations for a 0.2%
increase. The dip in industrial production in September
marks the first decline in the series in 15 months after
hitting a recession low in June of 2009.
US housing starts rose 0.3% in September to a
seasonally adjusted annual rate of 6,10,000 units.
Compared to September last year, housing starts were
up 4.1%. August starts were revised up to a 6,08,000-unit
pace from the initially reported rate of 5,98,000 units.
The Conference Board Leading Economic Index for the
U.S. increased 0.3% in September, following a
downwardly revised 0.1% increase in August, and a 0.2%
increase in July.
The eurozone's private sector growth continued to
decelerate in October led by the service sector. The
Markit eurozone composite purchasing managers' index,
fell to 53.4 from 54.1 in September, hitting the lowest
level in a year.
UK retail sales fell for a second month in September
suggesting that consumers started to restrain their
spending amid government's massive fiscal squeeze.
Although the retail sales volume including automotive fuel
decreased 0.2% in September from August, it was
smaller than last month's revised 0.7% fall. Year-on-year,
retail sales growth eased to 0.5% in September from
0.8%.
China's economic growth slowed between July and
September as the government rolled back stimulus
measures and tightened policy. The Chinese economy
expanded 9.6% in the September quarter compared with
the same period a year ago followed by a 10.3% rise in
the June quarter.
Domestic Key Events
Direct tax collections rose 19% in the six months to
September , increasing the chances of the government
raising the budgeted Rs 4,30,000 crore for the entire fiscal
year and ending with a lower-than-budgeted fiscal deficit. The
government managed to raise Rs 1,81,758 crore during the
period, up from Rs 1,52,625 crore in the year-ago period.
Food inflation eased marginally for the week ended October
9, indicating that supply constraints may have eased and the
arrival of winter crop could see a sharper drop. Food prices
rose 15.53% from a year ago, marginally below 16.37% in
the week before, as fruits and vegetables and select pulses
became cheaper.
Inflationary pressures and slackening consumer demand
have lowered corporate India’s business confidence for the
current quarter ending December. India Inc’s business
confidence has shrunk 1.4 points to 66.2 compared with 67.6
indicating better outlook for their businesses for April-
September 2010 period.
The finance ministry has shot down a proposal to levy 20%
duty on imported power equipment, saying domestic capacity
was far short of demand and the proposed move have made
electricity more costly.
The Communist Party of India-Marxist (CPI-M) asked the
central government to scrap deregulation in petrol pricing,
after public sector oil companies increased prices. The price
of petrol rose by 70 to 72 paise per litre. This follows an
increase of 27 paise per litre in September. The CPI-M said
the rise in petrol prices will further add to inflation.
The appreciation of the rupee against the USD has hit India’s
textile exporters. Following heavy rush of foreign institutional
investors (FIIs) to India, the rupee has appreciated by 6.3%
in the last two months. The rupee was ruling around 47 per
dollar two months ago and it breached below 44 and closed
at 44 levels.
The World Bank has approved a credit worth USD 13 million
in additional financing for the Mizoram State Roads Project to
continue revitalizing and modernising the state's highway
system.
The project will help improve the management and carrying
capacity of the core state road network in order to lower
transportation bottlenecks and costs, and stimulate economic
activity in the northeast Indian state.
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