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☆ Ex-defense minister Ishiba tops corporate Japan's premier wish list, Reuters poll shows
▼ + stars: | 2024-09-13 | by ( ) www.cnbc.com time to read: +2 min

Japanese former Defense Minister Shigeru Ishiba speaks during a press conference at the Foreign Correspondents' Club of Japan on Sept. 6, 2024 in Tokyo, Japan. Tomohiro Ohsumi | Getty Images News | Getty ImagesFormer defense minister Shigeru Ishiba is corporate Japan's top choice to replace Prime Minister Fumio Kishida, edging out Sanae Takaichi, who strives to become the nation's first female premier, a Reuters survey showed on Thursday. About 24% of respondents named Ishiba as the most desirable candidate, compared with 22% for Economic Security Minister Takaichi and 16% for Shinjiro Koizumi, the 43-year-old son of former premier Junichiro Koizumi. watch nowIshiba generally fares better than Koizumi in public opinion polls, but Koizumi has often come out on top among LDP supporters. Ishiba has held cabinet portfolios for agriculture and reviving local economies besides serving as defense minister and LDP policy chief.

Persons: Shigeru Ishiba, Tomohiro Ohsumi, Fumio Kishida, Sanae Takaichi, Kishida, Takaichi, Shinjiro Koizumi, Junichiro Koizumi, Koizumi, Ishiba, Kazuo Ueda Organizations: Defense, Foreign, Club of Japan, Getty, Former, Liberal Democratic Party, LDP, Economic Security, Bank of Japan Locations: Tokyo, Japan, United States

☆ Oil hovers at 8-month lows as U.S. recession fears offset Mideast tensions
▼ + stars: | 2024-08-05 | by ( ) www.cnbc.com time to read: +2 min

Oil prices hovered at eight-month lows on Monday as fears of a recession in the United States, the world's top oil consumer, offset concerns that escalating tensions in the Middle East may affect supplies from the largest producing region. The market had been expecting OPEC+ to delay the phase out of voluntary production cuts beyond the third quarter, ANZ analysts said. A Reuters survey showed on Friday that OPEC oil output rose in July despite production cuts by the group. Weak economic data across the globe weighed on oil prices, on concerns that a sluggish global economic recovery would dampen fuel consumption. Slumping diesel consumption in China, the world's biggest contributor to oil demand growth, is weighing on global oil prices.

Persons: Ismail Haniyeh, Fuad Shukr, WTI, Baker Hughes Organizations: New Harmony Oil, Brent, U.S, West Texas, Hezbollah, ANZ, Organization of, Petroleum, Reuters Locations: Grayville , Illinois, United States, Gaza, Cairo, Israel, Iran, Lebanese, East, Brent, U.S, Russia, China, Europe

☆ Bank of Japan is expected to trim bond buying by $100 billion in first year, Reuters survey shows
▼ + stars: | 2024-07-02 | by ( ) www.cnbc.com time to read: +1 min

The flag of Japan flutters at the Bank of Japan headquarters in Tokyo on Dec. 19, 2023. Japan bond market participants expect the central bank to trim bond purchases by roughly $100 billion in the first year under a quantitative tightening (QT) plan set for release this month, according to a survey conducted by Reuters. A Reuters survey of 19 banks, brokerages, insurers and asset managers showed they expect the Bank of Japan to trim bond buying by an average 16.1 trillion yen ($99.7 billion) in the first year. That would translate into monthly purchases of 4.65 trillion yen, down from the current pace of around 6 trillion yen. Combined, it would amount to a reduction of roughly 45 trillion yen during the two-year period.

Organizations: Bank of Japan, Reuters Locations: Japan, Tokyo, brokerages

☆ Oil edges up after Israel strikes Gaza, while truce talks continue
▼ + stars: | 2024-05-07 | by ( ) www.cnbc.com time to read: +1 min

Oil rig and pump of H&P Rig 488 in Stanton, Texas, on June 8, 2023. Oil prices ticked up early on Tuesday after Israel struck Rafah in Gaza while negotiations for a ceasefire with Hamas continued without resolution. Israeli forces struck Rafah on Gaza's southern edge from the air and ground and ordered residents to leave parts of the city, which has been a refuge for more than a million displaced Palestinians. Riyadh's move to raise the official selling prices for its crude sold to Asia, Northwest Europe and the Mediterranean in June also supported prices, signaling expectations of strong demand this summer. The world's top exporter hiked its flagship Arab Light crude oil price to Asia to $2.90 a barrel above the Oman/Dubai average in June, the highest since January and at the upper end of traders' expectations in a Reuters survey.

Persons: Israel Organizations: Brent, U.S, West Texas, Hamas Locations: Stanton , Texas, Israel, Rafah, Gaza, Israeli, Asia, Northwest Europe, Oman, Dubai

☆ Oil falls for a third day as U.S. crude inventories swell
▼ + stars: | 2024-05-01 | by ( ) www.cnbc.com time to read: +1 min

Oil prices fell for a third day on Wednesday on rising crude inventories and production in the U.S., the world's biggest oil consumer, along with increasing hopes of a ceasefire agreement in the Middle East. Brent crude futures for July fell 47 cents, or 0.5%, at $85.86 a barrel by 0005 GMT. U.S. West Texas Intermediate crude for June declined 53 cents, or 0.6%, to $81.40 per barrel. U.S. crude oil inventories swelled last week by 4.906 million barrels, while gasoline and distillate stockpiles fell, according to market sources citing American Petroleum Institute figures on Tuesday. Gasoline inventories fell by 1.483 million barrels, and distillates fell by 2.187 million barrels.

Persons: distillates Organizations: Brent, . West Texas, American Petroleum Institute, Energy Information Administration, Organization of, Petroleum, Reuters Locations: U.S, Israel, Egypt, Iran, Iraq, Nigeria

☆ Oil prices fall for a second day as U.S. crude inventories increase
▼ + stars: | 2024-03-27 | by ( ) www.cnbc.com time to read: +3 min

Oil prices fell for a second day on Wednesday after a report that crude stockpiles in the U.S., the world's biggest oil user, surged and on signs major producers are unlikely to change their output policy at a technical meeting next week. Brent crude futures for May dropped 74 cents, or 0.9%, to $85.51 a barrel at 0420 GMT. U.S. crude oil inventories rose by 9.3 million barrels in the week ended March 22, according to market sources citing American Petroleum Institute figures on Tuesday. Earlier this month, OPEC+ members agreed to extend their output cuts of about 2.2 million barrels per day to the end of June. Highlighting that Iraq is among the OPEC+ members that have admitted to overproducing in recent months, analysts at ANZ said in a report on Wednesday, "traders are also watching OPEC members for any sign they may be altering their stance on production quotas."

Persons: Rong Yeap, overproducing Organizations: Brent, . West Texas, IG, American Petroleum Institute, of, Petroleum, Ministerial, Reuters, ANZ Locations: U.S, Singapore . U.S, Russia, OPEC, Iraq

☆ Oil dips on profit taking after price crosses $85
▼ + stars: | 2024-03-15 | by ( ) www.cnbc.com time to read: +2 min

Brent crude oil futures for May fell 41 cents, or 0.5%, to $85.01 a barrel at 1234 GMT, after crossing $85 a barrel for the first time since November on Thursday. The International Energy Agency on Thursday raised its view on 2024 oil demand growth for a fourth time since November as Houthi attacks disrupt Red Sea shipping. World oil demand will rise by 1.3 million bpd in 2024, the IEA said in its latest report, up 110,000 bpd from last month. Also supporting oil prices, Ukraine struck Russian oil refineries in a second day of heavy drone attacks on Wednesday, causing a fire at Rosneft's biggest refinery in one of the most serious attacks against Russia's energy sector in recent months. Lower interest rates cut consumer borrowing costs, which can boost economic growth and demand for oil.

Organizations: Brent, . West Texas, International Energy Agency, Rosneft's, Energy Information Administration, Federal Reserve Locations: Ukraine, United States

☆ Oil prices rise as Gaza deaths complicate ceasefire talks
▼ + stars: | 2024-03-01 | by ( ) www.cnbc.com time to read: +2 min

Oil prices rose on Friday and were set to end the week modestly higher as talks over a potential ceasefire in Gaza were further complicated by the deaths of more than 100 Palestinians waiting for an aid delivery. Oil prices rose on Friday and were set to end the week modestly higher as talks over a potential ceasefire in Gaza were further complicated by the deaths of more than 100 Palestinians waiting for an aid delivery. President Joe Biden said the U.S. was checking reports of Israeli troops firing on people waiting for food aid in Gaza, saying he believed the deadly incident would complicate talks of a ceasefire. Israel has blamed the deaths on crowds surrounding the aid trucks, saying victims were trampled or run over. On the supply side, a Reuters survey showed the Organization of the Petroleum Exporting Countries, OPEC, pumped 26.42 million barrels per day (bpd) this month, up 90,000 bpd from January.

Persons: Brent, Joe Biden Organizations: U.S, West Texas, U.S . Federal, of, Petroleum, Reuters Locations: Gaza, WTI, Red, U.S, Israel, Qatar, Beijing, U.S ., Libyan

☆ Half of Japan firms look at restructuring to boost performance
▼ + stars: | 2024-01-18 | by ( ) www.cnbc.com time to read: +1 min

TOKYO, JAPAN - JULY 22: Office workers are seen reflected in a window as they walk to a train station in front of the Toshiba Corporations, Tokyo headquarters (left) on July 22, 2015 in Tokyo, Japan. (Photo by Chris McGrath/Getty Images)Around half of Japanese firms are looking at reviewing or restructuring their businesses to boost corporate value, including acquisitions, a Reuters survey showed, amid a push for companies to improve governance. The survey results are the latest sign of concrete actions companies in the world's third-largest economy are looking to take to overhaul their businesses and boost corporate value. The Tokyo market has hit its highest in three decades on expectations companies will boost shareholder returns through unwinding of crossholdings, share buybacks and other measures. While the TSE lists companies that have compiled or considering action plans, the Reuters survey shows measures being considered.

Persons: Hisao Tanaka, Chris McGrath Organizations: Toshiba Corporations, Toshiba Corporation, Tokyo Stock Exchange, Reuters Locations: TOKYO, JAPAN, Tokyo, Japan

☆ Oil slides as Saudi price cuts counter Middle East worries
▼ + stars: | 2024-01-08 | by ( ) www.cnbc.com time to read: +2 min

In an aerial view, oil storage tanks at the Enterprise Sealy Station are seen on August 28, 2023 in Sealy, Texas. Oil prices fell by more than 3% on Monday on sharp price cuts by top exporter Saudi Arabia and a rise in OPEC output, offsetting supply concerns generated by escalating geopolitical tension in the Middle East. On Sunday rising supply and competition with rival producers prompted Saudi Arabia to cut the February official selling price (OSP) of its flagship Arab Light crude to Asia to the lowest level in 27 months. A Reuters survey on Friday found that OPEC oil output rose in December as increases in Iraq, Angola and Nigeria offset continuing cuts by Saudi Arabia and other members of the wider OPEC+ alliance. "However, that doesn't take into account the fact that geopolitical tensions in the Middle East are undeniably rising again, which will mean limited downside."

Persons: John Evans, Tony Sycamore, Antony Blinken, Vandana Hari Organizations: Enterprise, Brent, West Texas, PVM, Reuters, West, Vanda Insights, Libya's National Oil Corporation Locations: Sealy , Texas, Saudi Arabia, Yemeni, Red, Asia, Iraq, Angola, Nigeria, OPEC, Saudi, Gaza, West Bank, Lebanon, Syria

☆ US job openings hit more than 2-1/2-year low as labor market cools
▼ + stars: | 2023-12-05 | by ( Lucia Mutikani | ) www.reuters.com time to read: +6 min

Economists polled by Reuters had forecast 9.30 million job openings in October. Job openings decreased by 168,000 in the finance and insurance industry, while real estate, rental and leasing had 49,000 fewer positions. The job openings rate dropped to 5.3% from 5.6% in September. "The current state of the labor market suggests no further recalibration is necessary to bring the labor market back into balance," said Nick Bunker, director of economics research at Indeed Hiring Lab. They also described the labor market as remaining "very competitive," and "trying to get to full staff levels."

Persons: Brian Snyder, Rubeela Farooqi, Nick Bunker, Conrad DeQuadros, November's, Bill Adams, Lucia Mutikani, Chizu Organizations: Taylor Party, Equipment Rentals, REUTERS, Labor, Survey, Labor Department's Bureau of Labor Statistics, Reuters, Treasury, Brean, Institute for Supply Management, PMI, United Auto Workers, UAW, Comerica Bank, Thomson Locations: Somerville , Massachusetts, U.S, WASHINGTON, White Plains , New York, South, Midwest, New York, East, Dallas

A shopkeeper naps as she waits for customers at a traditional market in Seoul, South Korea, April 7, 2022. REUTERS/Kim Hong-Ji/File Photo Acquire Licensing RightsSEOUL, Dec 5 (Reuters) - South Korea's inflation eased for the first time in four months in November, bringing relief to policymakers worried about persistent inflation risks as they plan to keep their restrictive monetary policy in place for longer. "Compared to core inflation in the U.S. and Europe that seem to be still in the 4% to 5% range, (South Korea's core inflation) seems to be far more stable," said Finance Minister Choo Kyung-ho at a policy meeting in Seoul. "Considering this, we see inflation stabilizing in a steady manner going forward, unless we face some additional external shocks." The Bank of Korea kept interest rates steady at 3.50% last week at its final policy meeting of the year and signalled it may need to keep interest rates higher for longer to head off persistent inflation risks.

Persons: naps, Kim Hong, Choo Kyung, BOK, Jihoon Lee, Chris Reese, Lincoln Organizations: REUTERS, Rights, Reuters Survey, Bank of, Thomson Locations: Seoul, South Korea, Rights SEOUL, U.S, Europe, Bank of Korea

☆ US manufacturing stays depressed in November-ISM
▼ + stars: | 2023-12-01 | by ( ) www.reuters.com time to read: +3 min

REUTERS/Kamil Krzaczynski/File Photo Acquire Licensing RightsWASHINGTON, Dec 1(Reuters) - U.S. manufacturing remained subdued in November, according to a survey on Friday that also showed factory employment declining. The Institute for Supply Management (ISM) said that its manufacturing PMI was unchanged at 46.7 last month. According to the ISM, a PMI reading below 48.7 over a period of time generally indicates a contraction of the overall economy. This measure has not been a reliable predictor of manufacturing payrolls in the government's closely watched employment report. Manufacturing payrolls are expected to have rebounded in November as about 33,000 striking United Auto Workers union members returned to work.

Persons: Kamil Krzaczynski, payrolls, Lucia Mutikani, Chizu Organizations: REUTERS, Rights, Institute for Supply Management, PMI, Reuters, United Auto Workers, Thomson Locations: Normal , Illinois, U.S

☆ South Korea Oct factory output falls most in 10 months on weaker chip production
▼ + stars: | 2023-11-29 | by ( ) www.reuters.com time to read: +1 min

SEOUL, Nov 30 (Reuters) - South Korea's factory output unexpectedly fell on weaker chip production in October and posted the biggest drop in 10 months, official data showed on Thursday. The industrial output index fell 3.5% in October from a month earlier on a seasonally adjusted basis, according to Statistics Korea. On a yearly basis, factory output rose 1.1%, compared with gains of 2.9% in the prior month and 5.2% expected by economists. In October, output also fell in the services sector, down 0.9% over the month, marking its first decline since May. The all-industry output index fell 1.6%, the biggest drop since April 2020.

Persons: Jihoon Lee, Chris Reese Organizations: Statistics Korea, Thomson Locations: SEOUL

[1/4] An illegal money changer checks old U.S. dollars at a marketplace in Harare, Zimbabwe, November 26, 2020. The government reintroduced the local currency in 2019, but it rapidly lost value. Zimbabwe's dollarization story is as full of warnings as it is with promise. During the five years before dollarization in 2000, the monthly measure of annualized inflation averaged 33% in Ecuador. "With our local currency we couldn't buy anything, it was very expensive to acquire things, so dollarization ... allowed people to have greater security in their purchases."

Persons: Javier Milei, Milei, Zimbabwe's, Bongiwe Mudau, Dollarization, dollarization, Mudau, Moses Mhlanga, Nestor Cerneaz, Wilson Andrade, Juan Carlos Villota, Guido Puig, Tito Correa, Nyasha, Miguel Lo Bianco, Rodrigo Campos, Adam Jourdan, Karin Strohecker, Rosalba O'Brien Organizations: REUTERS, Philimon, Rights, U.S ., Reuters, International Monetary Fund, hawker, Reuters Graphics Reuters, dollarization, Thomson Locations: Harare, Zimbabwe, Philimon Bulawayo, Rights QUITO, HARARE, BUENOS AIRES, Zimbabwe's, Quito, Ecuador, Argentina, El Salvador, greenbacks, Buenos Aires, Argentine, New York

View of the Cobre Panama mine, of Canadian First Quantum Minerals, in Donoso, Panama, December 6, 2022. Two Panamanian prosecutors have deemed the contract unconstitutional after examining legal challenges submitted to the court. First Quantum did not reply to a request for comment on the future of the contract pending court proceedings. Panama's mining chamber has urged against canceling the contract, saying First Quantum could sue Panama for at least $50 billion. Another lawyer said the court could also move to declare parts of the contract unconstitutional, which would not annul it completely.

Persons: Maritza Cedeno, Ariel Corbetti, Corbetti, Juan Carlos Arauz, Arauz, Victor Baker, Valentine Hilaire, Divya Rajagopal, Elida Moreno, Denny Thomas, Marguerita Choy Organizations: Minerals, REUTERS, Aris, Jiangxi Copper Co, Reuters, Panama, Thomson Locations: Panama, Donoso, Jiangxi, China

View of the Cobre Panama mine, of Canadian First Quantum Minerals, in Donoso, Panama, December 6, 2022. The disruption was caused by an "illegal blockade" of small boats at the mine's Punta Rincon port, the company said in a statement. The protests began after the Panamanian government and First Quantum signed a new contract on Oct. 20 for Cobre Panama, which contributes 1% to global copper production and 5% to Panama's gross domestic product. The demonstrators say the new terms are too generous to First Quantum and allege corrupt practices in its approval. A reduction of ore processing could potentially impact about 2% of Panama's national workforce, the company said, adding that two ore processing trains remain operational.

Persons: Sourasis Bose, Valentine Hilaire, Sriraj Kalluvila, Rosalba O'Brien Organizations: Minerals, REUTERS, Aris, Cobre, Reuters, Thomson Locations: Panama, Donoso, Rincon, Panamanian, Cobre Panama, Bengaluru, Mexico City

☆ Explainer: Iran's expanding oil trade with top buyer China
▼ + stars: | 2023-11-10 | by ( Muyu Xu | ) www.reuters.com time to read: +5 min

Here are key facts on Iran's oil trade with China:HOW MUCH IRANIAN OIL IS CHINA BUYING? HOW DOES IRANIAN OIL ENTER CHINA? Almost all Iranian oil entering China is branded as originating from Malaysia or other Middle Eastern countries. China regulates crude oil imports by issuing quotas. Giant state refiners Sinopec and PetroChina were once key Iranian oil clients, with investments in oilfields in the country.

Persons: Raheb, Donald Trump, refiners, China's, Muyu Xu, Florence Tan, Tony Munroe, Kim Coghill Organizations: REUTERS, Hamas, Imports, Reuters, Brent, Washington, State Department, Thomson Locations: Iranian, Iran, Israel, Tehran, China, CHINA, Washington, Malaysia, Oman, UAE, China's Shandong, Kpler, Shandong, Russia, Venezuela, Beijing, U.S

Gross domestic product (GDP) grew 4.94% annually in the July-September quarter, compared with 5.05% predicted by economists surveyed by Reuters. Growth was 5.17% in the second quarter. In the July-September period, household spending growth decelerated to 5.06%, from 5.22% in the previous three months. A bright spot in the GDP breakdown came from investment, which recorded a 5.77% growth in the third quarter, versus 4.63% in the second quarter. On a non-seasonally adjusted, quarter-on-quarter basis, gross domestic product expanded 1.60% in the July-September period.

Persons: Gayatri Suroyo, Kanupriya Kapoor Organizations: Gross, Reuters, Growth, Bank Indonesia, Thomson Locations: JAKARTA, Asia's, Ukraine, Middle

☆ US job growth probably slowed in October due to UAW strike
▼ + stars: | 2023-11-03 | by ( Lucia Mutikani | ) www.reuters.com time to read: +5 min

The anticipated moderation in employment growth last month would also be pay back after September's enormous gains, the largest in eight months. The Labor Department's closely watched employment report on Friday is expected to show labor market conditions steadily easing, with annual wage growth the smallest in nearly 2-1/2 years and significant growth in the supply of workers. Manufacturing payrolls are forecast falling 10,000 after advancing 17,000 in September. Last week, the BLS reported at least 30,000 UAW members were on strike during the period it surveyed businesses for October's employment report. Wages gains would still be above the 3.5% that economists say is consistent with the Fed's 2% target.

Persons: Brian Snyder, Detroit's, Sam Bullard, payrolls, Veronica Clark, we've, Sung Won Sohn, we're, Brian Bethune, that's, Lucia Mutikani, David Gregorio Our Organizations: Taylor Party, Equipment Rentals, REUTERS, UAW, United Auto Workers, Labor, Federal Reserve, Labor Department's Bureau of Labor Statistics, Manufacturing, BLS, Citigroup, UPS, Finance, Loyola Marymount University, Boston College, Thomson Locations: Somerville , Massachusetts, U.S, WASHINGTON, Wells, Charlotte , North Carolina, New York, Los Angeles

☆ S.Korea exports snap year-long downturn, recovery in China demand slow
▼ + stars: | 2023-11-01 | by ( Jihoon Lee | ) www.reuters.com time to read: +3 min

Overseas sales last month by Asia's fourth-largest economy rose 5.1% year-on-year to $55.09 billion, trade data showed on Wednesday. By destination, exports to the United States gained 17.3%, the most since May 2022, while China-bound shipments fell 9.5%, the least in 13 months. Exports of cars rose 19.8%, extending gains to a 16th straight month, while petroleum products also jumped 18.0%, after seven straight months of decline. Semiconductor shipments fell for the 15th consecutive month, but the 3.1% drop in October was the smallest in the streak. In October, South Korea's factory activity contracted for the 16th straight month, but the decline in new export orders softened, another survey showed on Wednesday.

Persons: Lee Jae, Asia's, Lee Jeong, Jihoon Lee, Christian Schmollinger, Muralikumar Anantharaman, Sonali Paul Organizations: Busan New, REUTERS, Rights, Overseas, United States, Eugene Investment Securities, Trade, Thomson Locations: Busan, Busan New Port, Seoul, Rights SEOUL, United States, China, United, Israel, South

☆ US job openings stay elevated, layoffs hit nine-month low
▼ + stars: | 2023-11-01 | by ( Lucia Mutikani | ) www.reuters.com time to read: +5 min

The Job Openings and Labor Turnover Survey, or JOLTS report from the Labor Department on Wednesday also showed layoffs dropping to a nine-month low. There were 1.50 job openings for every unemployed person in September, slightly up from 1.49 in August and way above the pre-pandemic ratio of 1.2. Data for August was revised lower to show 9.497 million job openings instead of the previously reported 9.610 million. Economists polled by Reuters had forecast 9.250 million job openings in September. Job openings dropped 43,000 in federal government and there were 41,000 open positions in the information industry.

Persons: Christopher Rupkey, Conrad DeQuadros, Lucia Mutikani, Chizu Organizations: Federal Reserve, Labor, Survey, Labor Department, Treasury, Reuters, Brean, Institute for Supply Management, United Auto Workers, UAW, Detroit's Big, Ford Motor, General Motors, Chrysler, Thomson Locations: WASHINGTON, U.S, New York

☆ South Korea economic growth to exceed potential rate in 2024, Yoon says
▼ + stars: | 2023-10-31 | by ( ) www.reuters.com time to read: +2 min

President of South Korea Yoon Suk-Yeol speaks at the opening session of Saudi Arabia's Future Investment Initiative conference in Riyadh, Saudi Arabia, October 24, 2023. South Korea's potential growth rate - the maximum economic growth that can be achieved without triggering inflationary pressure - is estimated to be around 2%, policymakers have said. In a Reuters survey conducted early this month, economic growth was forecast to slow to 1.2% in 2023 from 2.6% in 2022, followed by a recovery to 2.1% in 2024. The government in August unveiled its 2024 budget plan that included the smallest increase in two decades amid weakening tax revenue due to slower economic growth. He also pledged South Korea would maintain mutually beneficial cooperation with China, South Korea's largest trading partner.

Persons: South Korea Yoon Suk, Yoon Suk Yeol, Yoon, 1,348.7800, Jihoon Lee, Ed Davies Organizations: South, Saudi, Future Investment Initiative, Saudi Press Agency, Handout, REUTERS Acquire, Rights, Gross, Bank of, Thomson Locations: South Korea, Riyadh, Saudi Arabia, Rights SEOUL, United States, Bank of Korea, Washington, China, South

☆ US third-quarter economic growth seen fastest in nearly 2 years
▼ + stars: | 2023-10-26 | by ( Lucia Mutikani | ) www.reuters.com time to read: +6 min

While the anticipated robust growth pace notched last quarter is probably not sustainable, it would demonstrate the economy's resilience despite aggressive interest rate hikes from the Federal Reserve. According to a Reuters survey of economists, GDP likely increased at a 4.3% annualized rate last quarter, which would be the fastest since the fourth quarter of 2021. Others are not too concerned, noting the labor market continues to churn out jobs at a solid clip. Growth last quarter was also seen lifted by a smaller trade deficit, thanks to strong exports and increased inventory investment. But the labor dispute, which is costing auto makers millions of dollars per week, could weigh on growth in the fourth quarter.

Persons: Andrew Kelly, Joe Biden's, Sal Guatieri, Luke Tilley, it's, Yelena Shulyatyeva, Brian Bethune, Lucia Mutikani, David Gregorio Our Organizations: REUTERS, Business, WASHINGTON, Federal Reserve, United Auto Workers, BMO Capital Markets, Consumer, Wilmington Trust, Labor, Labor Department, U.S, Treasury, Financial, Group's, BNP, Boston College, Thomson Locations: Brooklyn , New York City, U.S, Toronto, American, Wilmington, Philadelphia, New York

SEOUL, Oct 26 (Reuters) - South Korea's economy fared better than expected in the third quarter with the expansion underpinned by exports, backing the case for the central bank to keep rates on hold for the months ahead. Government spending grew 0.1%, and construction investment expanded 2.2% after contracting 0.8% in the second quarter. On an annual basis, Asia's fourth-largest economy grew 1.4% in the third quarter, after a 0.9% gain in the second quarter and beating a 1.1% rise expected by economists. South Korea's central bank held interest rates steady for a sixth straight meeting last week, retaining a tightening bias on monetary policy as it warned of inflationary risks from the Israel-Hamas conflict and global oil prices. In a separate Reuters survey conducted early this month, South Korea's economic growth was forecast to slow to 1.2% in 2023 from 2.6% in 2022.

Persons: Ed Davies, Sam Holmes Organizations: Gross, Bank of, Thomson Locations: SEOUL, Bank of Korea, Korea's, Israel

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