USA: 1Q08 real GDP revised to 0.9% q/q annualized (May 29, 2008, 4:29 PM)
1Q08 real GDP growth was revised higher from 0.6% to 0.9% q/q annualized. The main upward revision took place in investment in non-residential structures from a growth contribution of -0.23% to +0.04%. Growth contributions from net exports and inventories were revised, but offset each other.
USA: Initial jobless claims hover around 370k (May 29, 2008, 4:29 PM)
Initial jobless claims rose 372k in the week ended 24 May, up from revised 368k in the prior week. The 4-week moving average fell slightly from 373k to 371k and has been hovering around 370k since end of March. Continuing claims continue to rise unabated.
Philippines: 1Q GDP growth slows down sharply (May 29, 2008, 12:18 PM)
Philippines 1Q GDP slowed to 5.2% y/y (consensus was 6%) from 6.4% in 4Q2007 (revised from 7.4%). A slowdown in consumer spending and negative growth in government spending and exports were the main factors that adversely affected the growth. We expect a further slowdown in the remainder of 2008.
Taiwan: 1Q GDP growth surprised on the upside (May 29, 2008, 12:17 PM)
Taiwan's 1Q GDP growth slowed to 6.1% y/y from 6.5% in 4Q07. It is better than market's 5.8% estimate on the back of better performance in exports and private investment sectors. We expect GDP growth to ease in 2Q, as TWD appreciation and high raw material prices weigh on exports and production.
Germany: Unemployment rose in May (May 29, 2008, 12:16 PM)
Unemployment rose 4,000 sa. in May, which was the first increase since Jan. 2006. The unemployment rate remained unchanged at a 16-year low of 7.9%. The result is not too worrying, given that the decline in unemployment was overstated by the seasonal adjustment procedure over the winter months.
Hungary: Unemployment rate falls (May 29, 2008, 12:16 PM)
The unemployment rate averaged 7.7% in the three months from February to April. Expected was an unchanged reading of 8.0%. In the same period a year ago, the unemployment rate averaged 7.5%. The unemployment rate is still rather high, as a result of weak growth, but at least the trend is down.
Switzerland: Strong employment report (May 29, 2008, 10:53 AM)
Swiss employment growth accelerated to 2.8% y/y in the first quarter. The index of open headcounts rose 13.9% y/y to its highest level since the second quarter of 2001. Overall, a strong report signaling that the labor market is likely to improve further. This bodes well for private consumption.
USA: Investment climate remarkably resilient (May 28, 2008, 4:30 PM)
Durable goods orders fell 0.5% m/m, ex-transportation orders rose 2.5% in April, both better than expected. Core capital goods orders and shipments rose 4.2% and 0.5%, respectively. The report paints a very resilient investment climate despite the clear slowing in final domestic demand.
Source: By UBS
