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TRADE WARS
British official manufacturing output rises in May
by Staff Writers
London (AFP) July 7, 2011

British manufacturing output rebounded in May on a monthly basis, but only just offset April's heavy drop, official data showed on Thursday.

Production soared in May by 1.8 percent, the Office for National Statistics (ONS) said in a statement. That was the sharpest monthly gain since March 2010.

Output climbed by 2.7 percent in May on a 12-month comparison. The data beat market expectations for a monthly increase of 1.0 percent and an annual gain of 2.1 percent.

However, the ONS also revised its estimate for April, when activity was hit hard by the special royal wedding holiday, while Japan's tsunami disaster sparked supply problems.

Manufacturing output slumped by 1.6 percent in April compared with activity in March. That was worse than the previous estimate of a 1.5-percent decline.

"May's rise in manufacturing output only just offset April's bank holiday-related drop, adding to other evidence suggesting that the industrial recovery is weakening," said Capital Economics analyst Vicky Redwood.

She added: "This slowdown in the industrial recovery looks like it might continue."

The ONS added Thursday that industrial production, which includes mining and quarrying, as well as electricity, gas, and water supply, rose by 0.9 percent in May, but was 0.8 percent weaker than the same month of last year.

The data was published ahead of the latest interest rate decision from the Bank of England. The British central bank is widely expected to hold its main lending rate at a record low 0.50 percent to help the flat recovery.




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Japan's current account surplus down 51.7% in May
Tokyo (AFP) July 8, 2011 - Japan's current account surplus shrank by a smaller-than-expected 51.7 percent from a year earlier in May with the impact of the March earthquake and tsunami weighing on exports, data showed Friday.

The surplus came to 590.7 billion yen ($7.3 billion) in May, the finance ministry data showed, beating economists' median forecast of 300 billion yen.

The quake and tsunami, which struck the country's northeast on March 11, badly hampered factory production, sending exports plunging.

Japan's surplus in the current account -- the broadest measure of the country's trade with the rest of the world -- fell for the third consecutive month after the March disaster.

But with the supply chain rapidly coming back online, the latest drop in the surplus was smaller than a 69.5 percent plunge in April.

Japan logged a trade deficit of 772.7 billion yen in May against a year-before surplus of 402.7.

Exports fell 9.8 percent to 4.5 trillion yen, compared with growth of 34.0 percent a year earlier but better than a fall of 12.7 percent registered in April.

Imports soared 14.7 percent to 5.3 trillion yen largely due to higher energy costs.

The current account measures trade in goods, services, tourism and investment.





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Chinese media attack WTO ruling against China
Beijing (AFP) July 6, 2011
Chinese media on Wednesday lashed out at a ruling by the World Trade Organisation that said Beijing's export restrictions on raw materials are illegal, and warned rare earths would be the next target. The WTO on Tuesday upheld complaints by the United States, European Union and Mexico, ruling that China had failed to abide by accession commitments when it imposed quotas and duties on several ... read more


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