Various Posts From Daily Rate Sheet - Summary

May 21
The consumer confidence that started to return in April could not be sustained. A gloomy budget deficit further dented confidence leading to a drop of 4% from the 13 months highs of April to 88.8 in May. Consumer sentiment has remained in recessionary territory for over a year now but lower interest rates, increased housing affordability and government stimulus should see some optimism slowly return. Job security will however remain the main factor dampening confidence.

May 22
Overnight S&P downgraded the credit outlook for the UK economy saying Britain's outlook was negative and no longer stable. This caused some jitters about whether the US could hold onto its AAA credit rating.

May 26
Overnight, the Japanese government raised its assessment of Japan's economy for the first time in three years, saying the pace of worsening activity is slowing as exports and industrial output are bottoming out.

Confidence in Germany seems to be returning with the second month of increases in a corporate sentiment barometer over there. Hope is for the Euro Zone to stabilise in the latter part of 09.

In Australia, a non-traditional indicator being airline activity has shown there are fewer empty seats on domestic airlines than a year ago.

May 27
Overnight US consumer confidence soared from 40.8 to 54.9 in May, the biggest jump in six years. Consumer confidence now stands at eight month highs. US house prices fell by 2.2pct in March to be down 18.7pct on a year ago. And the Richmond Fed manufacturing index rose from minus 9 to plus 4 in May. The index had been as low as minus 20 just two months ago.

In Australia another non-traditional indicator - mobile phone sales - is showing some strength. They hit record highs in the first four months of 2009. It looks like this is where Kevin's stimulus package has gone. The new owners will no doubt be hoping for another package to pay for the phone bills!