Positive numbers still coming through for the US and Japan

The IMF may have cut its forecast for global growth in 2008 but there are still pockets of strength, even in the US. Bloomberg reports the latest US economic indicators.

Orders for U.S. durable goods rose more than forecast, while consumer confidence and home prices fell, indicating business investment held up as other parts of the economy weakened.

The 5.2 percent increase in demand in December for computers, aircraft and other items made to last several years was the biggest in five months, the Commerce Department said today in Washington. A gauge of confidence dropped to 87.9 this month, approaching a two-year low, the Conference Board reported separately...

While exports are keeping factories open, the housing industry shows little sign of rebounding. Prices in 20 American cities fell 7.7 percent in November from a year ago, according to the S&P/Case-Shiller home-price index.

James Picerno at The Capital Spectator tells us to keep the durable goods orders number in perspective though as "the strength in December’s report doesn’t reverse the overall trend of the past two years, which is unmistakably down".

In the meantime, ongoing efforts to provide fiscal stimulus may help the US economy, but the troubles facing bond insurers remain a big threat.

However, the US economy is not the only one facing difficulty. Goldman Sachs recently said that Japan may have already fallen into recession.

The economic indicators from Japan have not been clear though. Today's report from Japan shows that industrial output rose in December but by a smaller-than-expected 1.4 percent.

Yesterday's reports had been largely positive. From AFP/CNA:

Japan's unemployment rate in 2007 averaged 3.9 per cent...

In December, the nation's jobless rate was unchanged at 3.8 per cent from the previous month, the 25th consecutive monthly fall...

However, a separate report from the labour ministry showed there were more job seekers than job offers for a second straight month in December amid concern that many new jobs being created are unstable and undesirable...

But...spending by Japanese households in December jumped 2.2 per cent in real terms from a year earlier to an average 351,667 yen (US$3,287 dollars), far above market forecasts...

The government also said retail sales in Japan rose 0.2 per cent in December from a year earlier, the fifth straight year-on-year gain, due to increased spending on fuel because of higher gasoline prices.