China's August inflation

eases as economy recovers

The Associated Press, Beijing | Business | Mon, September 09 2013, 11:45 AM
Business News

China's August inflation edged down as an economic recovery gathered strength, easing pressure on communist leaders who
want to focus on longer-term reforms.
Consumer prices rose 2.6 percent, down from July's 2.7 percent, government data showed Monday. Food prices rose 4.7
percent, down from the previous month's 5 percent.
Slower price rises and improved economic activity could allow Chinese leaders to shift attention from propping up weak growth
to work on longer-term reforms to make the economy more efficient and productive.
Communist leaders are trying to nurture more self-sustaining growth driven by domestic consumption instead of trade and
investment. They have backtracked in some areas to perk up growth with more spending on railway construction and other
limited measures but have resisted pressure for a more ambitious stimulus.
Economic growth declined to a two-decade low of 7.5 percent in the second quarter but trade, factory output, auto sales and
other indicators suggest the slowdown is leveling out.
"A number of data points suggest that economic activity is picking up," said Alaistair Chan of Moody's Analytics in a report.
"These factors suggest that the government will not loosen monetary policy further."
Export growth accelerated to 7.2 percent in August from July's 5.1 percent.
Also in August, producer prices, or prices of goods as they leave the factory, that have declined steadily for more than a year
fell less sharply. That was another sign economic activity and demand are picking up.
Producer prices declined 1.6 percent compared with July's 2.5 percent fall.
"The decline in producer prices is easing as commodity prices and the wider economy recover," said Matthew Circosta of
Moody's Analytics. "A revival in production and fixed investment is placing upward pressure on mining, raw materials and
manufactured goods prices."

Oil heads toward $108 as

US economy brightens
Pamela Sampson, The Associated Press, Bangkok | Business | Thu, September 05 2013, 12:48 PM
Business News

Oil prices rose Thursday after new U.S. indicators underlined a modest recovery in the world's biggest economy.
Benchmark oil for October delivery was up 28 cents to $107.51 at midday Bangkok time in electronic trading on the New York
Mercantile Exchange. The contract fell Wednesday by $1.31, or 1.2 percent, to close at $107.23 a barrel on the Nymex.
A jump in U.S. auto sales helped brighten the outlook for oil consumption. General Motors and other U.S. carmakers posted
strong sales in August, giving the auto industry its best month in six years.
The Federal Reserve also said Wednesday that surveys showed moderate growth throughout the country.
What's more, the economies of the Europe and Japan are finally growing. Japan's central bank said Thursday that the world's
No. 3 economy was recovering "moderately." The combined economy of the 17 euro currency nations grew 0.3 percent in the
second quarter of 2013 after 18 months of recession. Chinese manufacturing has turned a corner after a prolonged slump.
Investors will be monitoring fresh information on U.S. stockpiles of crude and refined products.
Data for the week ending Aug. 30 is expected to show draws of 2.5 million barrels in crude oil stocks and 1 million barrels in
gasoline stocks, according to a survey of analysts by Platts, the energy information arm of McGraw-Hill Cos. The Energy
Department's Energy Information Administration the market benchmark will be out on Thursday.
Brent, the benchmark for international crudes, rose 17 cents to $115.08 a barrel on the ICE Futures exchange in London.
Prices of Brent have risen sharply due to fears the U.S. could intervene militarily in Syria's civil conflict.
"The likelihood of an international military intervention in the conflict in Syria, and therefore a general deterioration of the
security situation in the broader region, increased markedly over the past week due the escalation of violence in the non-OPEC
country," said analysts at Goldman Sachs in a newsletter commentary.