Instant view: sales increase in April

NEW YORK - new single-family home sales in the United States rose unexpectedly in April to check their second straight month of gains and increased prices, according to a Government report Tuesday that offered some hope for the stagnant housing market.

RICHMOND FED:

The key POINTS: * the Ministry of Commerce said sales increased by 7.3% to a seasonally adjusted annual rate of 323,000 unit, the highest level since December, a slightly upward revised collection-unit pace in March. * Economists surveyed by Reuters had expected unchanged sales at a speed of 300 000 units previously reported. All four areas registration of sales, with the West gains reported an increase of 15.1%. * However, from last April, sales have decreased by 23.1%. * The Richmond Federal Reserve, said that its composite index fell to-6 in May of + 10 in April.

COMMENTS:

RICHARD DEKASER, ECONOMIST, THE PARTHENON GROUP, BOSTON

"It is a positive surprise." Sales activity continues to bounce off the bottom. There is no evidence of a second run down housing, but there is no convincing evidence of a rebound. This significantly alter the behavior of lenders.

"The inventory of homes is rare extreme levels in the context of a glut of existing homes." It is augured well for the activity future construction. When this happens? It is already the case, but you need a microscope to discern. ?

DAVID ADER, SENIOR GOVERNMENT BOND STRATEGIST, CRT CAPITAL GROUP, STAMFORD, CONNECTICUT:

"One greater than the gain expected sales and a price gain (compared to three months before negative numbers) therefore a more firm, if volatile, report."

"Richmond Fed, with all due respect, is not really followed many, but is a may figure and the weakness is remarkable and widespread." The Richmond Fed figure who has at least a correlation of 78 percent with ISM. ?

MICHAEL GAPEN, SENIOR ECONOMIST AMERICAN, BARCLAYS CAPITAL, NEW YORK, NEW YORK:

"It was certainly a report better than expected, but at the same time, I am reluctant to read too inside." Total sales remain well below their healthy levels of longer term, but nevertheless, it is above the average rate of k 286 observed in the first quarter.

"Lower activity in sales of homes early in the first quarter was largely due to adverse weather conditions as it is logical that we are witnessing an escalation of these levels.". Another positive is the supply of homes fell. If the month down to 4 months which would be levels of before the crisis, therefore, even at the low level of sales, inventory is very lean and thus at some point builders will emerge and begin to build once more.

MICHAEL YOSHIKAMI, PRESIDENT AND CHIEF INVESTMENT STRATEGIST AT ADVISORS IN WALNUT CREEK, CALIFORNIA YCMNET

"I do not think there is much to do that.". There is still a huge overhang on the housing market, and then the sales begin to filter, which does not change the fact that we have still such huge inventory. But since the number was about expectations, investors will focus on other issues such as Europe or new businesses. ?

GARY THAYER, CHIEF MACRO STRATEGIST, WELLS FARGO ADVISORS, ST. LOUIS, MISSOURI:

"It is a good number, better than expected." Perhaps, he suggests that we begin to see some signs of stabilization in housing, but it is too early to say that we have bottomed out. We still have many existing homes for sale and this excess inventory is likely to hang on the new domestic market for the most part of a year. And a sense of Home Builder remains very negative. It will not succeed as if manufacturers feel that we turned the corner yet. ?

PIERRE ELLIS, SENIOR ECONOMIST DECISION ECONOMICS, NEW YORK:

"Sales were stronger than expected, but that does not say much, given that the level is still low." But it is encouraging in the sense that it was large scale between regions and he fired the inventory of houses down. ?

PATRICK NEWPORT, ECONOMIST, IHS GLOBAL INSIGHT, LEXINGTON, MASSACHUSETTS:

"The note of caution is that this version tends to be volatile." The number is still valid, but it is flat on the bottom. Manufacturers are having fewer problems selling their property. ?

"It is too early to say that we are at a turning point for housing." You have to wait three to four months of positive months until you can say things are getting better. ?

LINDSEY PIEGZA, ECONOMIST, FTN FINANCIAL, NEW YORK

"We beat consensus, which is certainly a positive spin to this report.". However, if you look at a chart of sales we really not have acquired any ground since the end of 2009. We are not losing any ground here, but we have no positive progress.

"Demand is still warm." Consumers still are struggling to make their monthly payments. We are always dealing with the same negative overhangs, that we have been dealing with for some time.

"Market really does read in housing as it used to because it does not mean that it was in terms of the economy and supplementing income." Unless we have seen a very significant improvement in the trend or decrease in trend I think market continues to respond to a report of housing. ?

VIMOMBI NSHOM, ECONOMIST, ECONOMICS IFR, A THOMSON REUTERS UNIT:

"New sales of houses, just as any other indicator of housing, has been a ride roller coaster for 2011 - rising in the last two months after having dropped in the two forward." Alternating patter will probably persist for the rest of the year.

"All regions have experienced gains sales contributes to lowering the number of new homes available at the purchase of 175 k - a record low - and the houses down almost 10% and 6.5% months supply." The breakdown of stock is a double edge sword as the lightest stock means sales are correcting arrears, but the low number shows also the damage still prevalent on the given market adversity builders' to build homes, that no one will buy - especially given the premium prices on homes previously owned. ?

REACTION of the market: the STOCKS: U.S. stock indices trimmed gains obligations: the United States binding prices slipped modestly FOREX: dollar maintained gains against the yen

Public loan UK record keystroke in April

LONDON - Britain public loans exceeded the highest level ever recorded for the month of April - a blow to the much-publicised deficit reduction plans of the Government.

The National Statistics Office, said Tuesday that public borrowings, excluding financial interventions such as bailing out banks, reached 10 billion pounds ($16 billion) in April, compared to 7.3 billion pounds the previous year.

It is much higher than expected, economists about 6.5 billion pounds, cast doubt on the question of whether the coalition Government led by the conservative can reach its goal of reducing the deficit to 122 billion pounds this year.

The Office of the tax received said statistics in April of last year was boosted by a single tax on the bonuses of bankers which introduces 3.5 billion pounds.

Gauge of economic activity fell in April

WASHINGTON - an indicator of U.S. economic activity fell in April that the Japanese earthquake hurt automobile production.

The Federal Reserve Bank of Chicago said its index was less 0.45, in April, unlike a positive reading of 0.32 in March. It is the lowest reading since August.

A reading below zero indicates below-trend growth in the national economy. Economists say normal growth is approximately 3% of the pace.

Plants produce less in April, a main reason for the decline. A shortage of parts from the Japanese earthquake on March 11 forced automakers to reduce output.

Economists say that supply disruptions will very likely be temporary. They say also business U.S. are likely to be of benefit once that Japanese reconstruction effort is ongoing. Economists say U.S. manufacturers are likely to fill the orders related to these efforts.

April of loan business, improve the quality of the credit

NEW YORK  - a key measure of U.S. business activity rose in April and credit quality improved as the economy slowly gathered steam, a group of lender, said Monday.

Companies native American of 5.1 billion in loans, leases and credit lines, April 10 more percent a year earlier, while 18% below March $ 6.2 billion, rental equipment and Finance Association (ELFA) said.

"We see a sustained recovery, albeit slow and some sectors are continuing to perform and some sectors are continue to underperform," ELFA Director-General to William Sutton said in an interview.

It is not uncommon to have a monthly dip in the first month of each quarter, said it.

Construction and trucking remain the main sectors of poor performance, according to ELFA.

"If you look at the cumulative data for the year to date, we still see a 27% increase over the same four months of last year," said Sutton.

The rebound comes off the coast of levels depressed a year earlier, he said, when companies were more reluctant to expand and buy new equipment.

ELFA represents lenders who finance half of the capital investment to the United States each year. The Group reports of economic activity for the equipment finance sector of $ 521 billion.

CREDIT ON THE MEND QUALITY

Charge-offs, which reflect the likely to be repaid, loan fell to 0.8 per cent in April from 1.3% in March and 1.6% in April 2010.

It was the lowest since before the recession, when charge-offs oscillated around 0.5% at the end of 2007, Sutton said.

ELFA said 3.3% of borrowers in April have been 30 days or later, a decrease of 3.5% in March. It was 9 per cent below a year earlier.

Approved lenders 76% of requests for credit capital spending in April, up from 75% in March.

ELFA may monthly confidence index dropped to 70.3 April 63.2, meanwhile, reflecting the uneven performance of the various sectors of activity.

"Some areas are still low, for example, construction and road transport, and they're not coming back as soon as everyone would like," reduces the level of trust, Sutton said.

Total workforce for equipment financing companies rose slightly after flat for five straight months and was up 1% on the year.

Decline in the rate of unemployment in most of the States in April

WASHINGTON  - employment conditions continued to improve in almost all the States in April, as the recovery of the longest and deepest recession in U.S. Since putters of the second world war, the Labour Ministry data released Friday showed.

Only eight American States had unemployment rates in double-figures in April. It was half less than 18 countries with rates of unemployment of 10 percent or more just a year before.

In almost all States, 46, the unemployment rate in April was lower in April 2010.

Unemployment rate fell in 39 States in April of March; Only three States and the District of Columbia had increased.

"It is the fourth straight month of decline in the unemployment rate in Florida and the lowest rate in more than a year and very encouraging for employers and job seekers, a half - Florida", said Office of the State for Workforce Innovation Director Cynthia Lorenzo, in a statement.

Nevada continued to register the highest rates of unemployment among the, at 12.5%, followed by California at 11.9%.

Still, Nevada this year has constantly retracted rate reached 14.5% record employment in December. He marked the fall more in its monthly unemployment rate in April, said the Ministry of labour.

In Michigan, unemployment rate fell 2.9 points percentage of April 2010 to 10.2%, the largest over-the-year decline.

The lowest unemployment rate continued to rise by North Dakota, to 3.3%, Nebraska, 4.2% and South Dakota, at 4.9%. The three States are held low spots during the recession. New Hampshire has also had an unemployment rate of 4.9% in April.

In the month, the payroll grew in 42 States and the District of Columbia.

New York acquired the most jobs, 45,700, followed by Texas, 32 900 and the Pennsylvania, 23 700. Michigan has lost most of 10 200 jobs, followed by Minnesota, 5 200 and South Carolina, 3 800.

April budget gap shrinks considerably from a year ago

WASHINGTON - the received income tax increase helped helped cut the deficit of monthly budget by half in April from last year, issued by the Treasury Department on Wednesday showed the figures.

The budget deficit is 40.5 billion dollars in April, compared to a deficit of 82.7 billion in April 2010, said the Treasury Board.

But the relatively favourable data has not changed the image of an economy heading deeper in debt and a few days from date limit may 16 to hit a ceiling legally set on Government borrowing.

For the first seven months of the fiscal year 2011, which ends September 30, the cumulative deficit grow to 869.9 799.7 billion billion in the comparable period of the previous year.

Deficit figures are a dark backdrop for the current effort by the administration Obama to agree with Capitol Hill legislators on an action plan to reduce the deficit.

The White House said President Barack Obama is going to get directly this week in the exchange of ideas with legislators on the problem in question but said that he would negotiate with them. Even some Democrats and Republicans want the administration to be more aggressive in the reduction of expenditures.

Adding urgency to the talks is limit next Monday to hit a ceiling of debt 14.294 billion, which caps the amount of the country can legally borrow. Republicans want the administration to agree to significant cuts as a price for agreeing to raise the limit.

In April, the budget report shows government spending rose to 330 billion of $ 328 billion in April 2010, and for the first seven months of the year it was up to 2.179 $ trillion in 1999 trillion a year earlier.

On income, received in April increased to 289.5 billion $ 245.3 billion. In this category, revenues from the tax on increased individual income strongly 155,6 billion $ 107.3 billion in April, 2010 - may be a sign of an improving labour market in a strengthening of the economy although the Treasury gave no explanation.

Revenue from the tax on the income of the companies in April acquired 25.1 billion to $ 23.1 billion in April last year less striking than the increase of tax on the income received, but nevertheless on the same upward trend.

April 18 was the deadline for the production of this year for people to pay their taxes the income of 2010 and April is typically a strong month received. For example, the number of revenue April was triple take Government $ 52.8 billion in March.

The Congressional Budget Office, Office of watchdog of the Congress, the forecast for the whole of the fiscal year 2011, the Government will release a huge deficit of 1.4 trillion - a gap between expenditure and revenues that must be met by borrowing for purposes of pay for the wars to distribute pensions.

Simple interest payment due on publicly held the cost of debt - although foreign investors - Government 139,3 billion in April. Which increased by 123.1 billion in April 2010.

China, manufacturing growth slows in April, hit by shaking (Reuters)

BEIJING (Reuters) - China manufacturing growth slowed in April, a survey showed Sunday, suggesting that the efforts of the Government clamp have weighed on the world's second economy heavier than expected.

The official purchasing managers for China indexes fell to 52.9 in April, 53.4, in March, well shy of forecasts of market for an increase of 54.0.

The investigation, which is designed to provide an overview of the conditions, in the vast China manufacturing sector was in large part to a separate PMI sponsored by HSBC published Friday clinging close a minimum of seven months to 51.8 in April.

With inflation running at faster than sound in nearly three years, China has taken a series of measures to control prices, raising rates of interest and of required Bank reserves many times, ordering banks lend less and accelerate the pace of the appreciation of the currency.

On the positive side of the ledger, the official PMI showed that these measures have hit at least partly the brand. A subindexes, measuring the price of entry fell to 66.2 in April, a minimum of seven months, from 68.3 in March.

But the inquiry also flashed worrying signals for the global economy, which has become increasingly reliant on Chinese demand as a source of growth in Europe, the United States and the Japan still struggling to recover from the financial crisis.

"Overall, the PMI shows that there is always a possibility that the Chinese economy may slow, especially in fall of demand leads to adjustments in inventories, increase the possibility of slower economic growth," said Zhang Liquna researcher at the Government.

The new subindexes orders weakened to a minimum of eight months of 53.8 in April of 55.2 in March. Much of this decline is due to slower growth in the orders export, including subindexes dipped 52.5 51.3.

Zhang "autumn can show that the growth of exports will continue to slow down," said in a commentary for the Federation of China logistics and purchase, which compiles the official PMI.

GROWTH REMAINS ROBUST

Despite tightening sustained campaign of Beijing on half of the year, economists surveyed by Reuters are still waiting for China's economy to grow at a nearly double-digit pace this year. They forecast that emerges from 9.5% in 2011 after the expansion of 10.3% last year.

To the extent of this robust impulse, it was the 26th straight month that had resisted the official PMI above the threshold of 50 which isolates them the expansion of the contraction.

The World Bank said Thursday it was too early for China to stop its tightening policy as it raised his average inflation years in a quarterly journal of economics.

Stubborn price pressures have fueled talk of market that Beijing could let the yuan amounted to a clip more rapid, or even take more stringent measures by pushing through a large revaluation.

The Government has in the past consistently excluded a one-time revaluation, saying: there is no reason for any major change in exchange rate policy. But he showed his appetite for a progressively stronger yuan in recent weeks by it directors in a succession of Records against a sluggish dollar.

Investors are in custody for the next round of monetary tightening Chinese. The Central Bank has raised rates four times since October and economists surveyed by Reuters expect another increase in the next two months.