U.S. consumer spending falls by 0.2% in March

WASHINGTON, April 30 (Xinhua) -- U.S. consumer spending fell 0.2 percent in March, the first drop in three months, while income growth slipped for a second consecutive month, the Commerce Department reported Thursday.

The March drop followed gains of 1.1 percent in January and 0.4percent in February. The back-to-back increases came after consumer spending had posted six straight monthly declines as consumers slashed outlays in the face of a deepening recession.

Economists had been expecting a 0.1 percent decline for last month.

Personal income, the fuel for future spending, dropped by 0.3 percent in March, worse than the 0.2 percent dip that had been expected. Income rose by 0.1 percent in January and declined by 0.2 percent in February.

Americans' disposable personal income, or after-tax income, was flat in March, the same as the previous month.

But Americans were saving more. The personal saving rate, personal saving as a percentage of disposable personal income, increased to 4.2 percent last month from 4.0 percent in February.

Consumer spending, which accounts for two thirds of total economic activity, rose at an annual rate of 2.2 percent in the first quarter of this year after two consecutive quarters of declines.

However, many economists believe that consumer spending will dip back into negative territory in the current April-June period as the economy is still in a severe recession and the unemployment rate stands at 8.5 percent, the highest level since late 1983.

Dollar falls on Fed comments

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NEW YORK, April 29 (Xinhua) -- The dollar fell against most major currencies on Wednesday as investors' risk appetite was boosted by comments from the U.S. Federal Reserve.

The Fed decided to keep the target range for the federal funds rate at zero to 0.25 percent, a record low. The central bank said in a statement that the economy has continued to contract, though the pace of contraction appears to be somewhat slower.

Household spending has shown signs of stabilizing but remains constrained by ongoing job losses, lower housing wealth, and tight credit, the Fed said.

The U.S. Commerce Department reported that U.S. gross domestic product decreased at an annual rate of 6.1 percent in the first quarter of 2009. The loss was larger than expected but slight higher than the previous quarter.

Personal consumption expenditures, which account for two-thirds of U.S. economic activities, increased 2.2 percent in the first quarter, in contrast to a decrease of 4.3 percent in the previous quarter. Durable goods increased 9.4 percent, nondurable goods increased 1.3 percent.

The euro bought 1.3289 dollars in late New York trading compared with 1.3147 dollars it bought late Tuesday. The pound rose to 1.4772 dollars from 1.4620 dollars.

The dollar fell to 1.2008 Canadian dollars from 1.2190 Canadian dollars, and fell to 1.1358 Swiss francs from 1.1440 Swiss francs. It rose to 97.68 Japanese yen from 96.45 Japanese yen.

Dollar falls amid better-than-expected economic data

Special Report:Global Financial Crisis

NEW YORK, April 28 (Xinhua) -- The dollar fell against most major currencies on Tuesday as U.S. consumer confidence soared and house price decline slowed.

The Conference Board reported on Tuesday that its consumer confidence index soared from 26.9 in March to 39.2 in April, the highest since November. It was much higher than economists' forecast of 29.0.

The report shows that U.S. consumers are gaining confidence about future economic conditions. But the index remains at low level, compared to a reading over 110 in July 2007.

U.S. house prices continued to fall at a rapid but slightly slower pace in February, according to the Case-Shiller house price index released on Tuesday.

House prices in the 20 largest U.S. metropolitan areas fell by 18.6 percent year-on-year, up from the record loss of 19 percent in January. It was slightly better than analysts' expectation, suggesting that house prices are getting closer to a bottom.

Worries about swine flu threat partly offset the positive economic reports. The World Health Organization (WHO) on Monday raised its pandemic alert level from Phase 3 to Phase 4, warning of a significant increase in the risk of a pandemic.

Investors worried that a possible pandemic may deal another severe blow to the struggling global economy, reverse any progress of recovery.

The euro bought 1.3147 dollars in late New York trading compared with 1.3019 dollars it bought late Monday. The pound fell to 1.4620 dollars from 1.4633 dollars.

The dollar fell to 1.2190 Canadian dollars from 1.2197, and fell to 1.1440 Swiss francs from 1.1568. It fell to 96.45 Japanese yen from 96.74.

China Enterprises Index falls 1.76% in Hong Kong

Special Report:Global Financial Crisis

HONG KONG, April 16 (Xinhua) -- All major indices reflecting the
performance of Hong Kong-listed Chinese mainland companies closed lower on
Thursday after China's released its key economic data in the first quarter.

The Hang Seng China Enterprises Index lost 164.23 points, or 1.76 percent,
to close at 9,141.23 as investors locked in profits on huge rally during the
previous sessions.

The H-shares index, initiated in August 1994 and readjusted on Jan. 5,
2009, tracks the overall performance of 43 major Chinese mainland enterprises
listed on the Hong Kong Stock Exchange.

The Hang Seng China H-Financials Index slumped 268.34 points, or 2.18
percent, to close at 12,032.79.

The H-Financials Index, initiated on Nov. 27, 2006, readjusted on Sept. 10,
2007, tracks the performance of nine major banks and insurers of the Chinese
mainland.

The Hang Seng Mainland Composite Index dipped 19.92 points, or 0.67
percent, to close at 2,956.61.

Introduced on Oct. 3, 2001, and with the latest readjustment effective on
March 9, 2009, the Hang Seng Mainland Composite Index gauges the performance of
132 Hong Kong-listed companies with principal places of business in Hong Kong
and the Chinese mainland.

The Hang Seng China-Affiliated Corporations Index slipped 5.39 points, or
0.16 percent, to close at 3,417.51.

The index tracks the performance of 34 locally listed companies with a
significant equity interest held by entities in the Chinese mainland.