Global Economy
Review: The United States economy grew at an annual rate of +2.7% in the September quarter, which was faster than anticipated. However the impact of Hurricane Sandy and concerns over the fiscal cliff and scheduled budget tightening has added to short term uncertainty. This was reflected in the US manufacturing conditions survey that fell in November.
On a positive note, American housing showed sign of a recovery. US housing starts have risen by +42% in the year to October. The confidence survey of home builders has also surged to a new six year high. Meanwhile, the US Federal Reserve has further expanded its quantitative easing program by an addition US$45 billion per month.
Economic data indicated the mild recession in the Eurozone continues….