New U.S. home sales hit 2 1/2-year high

WASHINGTON (MarketWatch) — Sales of new homes shot up 4.4% in November to a two-and-a-half-year high in another sign that the ongoing recovery in the nation’s housing market is solidifying.

Asia stocks up on Japan optimism; Europe opens up

BEIJING (AP) — Asian and European stock markets rose Thursday, while and Japan's benchmark index hit its highest level in more than a year optimism a new government in Japan will stimulate the country's sluggish economy.

China warns of rising financial risks

BEIJING: China's financial system is facing increasing risks due to soaring bank loans, with lending to the property sector and local governments a particular concern, the finance ministry warned Wednesday.

With the UK economy stuck in a groove, what prospects for 2013?

On the Saturday before Christmas the shop windows told their own story. Up to 50% off at Hobbs. Discounts of 60% at LK Bennett.

Why 2013 will be a year of low growth, low returns, lower risk

The upshot for investors may be a calmer year, but possibly one that is less lucrative. It could be quite a contrast from 2012, which featured plenty of drama, notably in the euro zone, but also decent returns courtesy of a 12.5 percent gain in the S&P500 stock index and a similar return from global shares.

Signs suggest better economy if 'cliff' is averted

WASHINGTON (AP) — Fresh signs of a strengthening U.S. economy on Friday suggested that if Congress and the White House can avert the "fiscal cliff," the economic recovery might finally accelerate in 2013.

Deficit worsens despite George Osborne's boast

Britain's underlying fiscal deficit is continuing to grow thanks to the chronic weakness of the economy, the latest borrowing figures from the Office for National Statistics (ONS) showed yesterday.

2013 augurs better for world economy, if only slightly: Poll

LONDON: Next year promises only a slight pick-up in the world economy and even that will again depend heavily on the United States and emerging markets as Europe stalls, according to the latest Reuters Polls.

German business confidence rises

German business confidence rose for the second month in a row in December, according to a closely-watched survey.

World 2013 growth seen slow, political risks remain-bank group

WASHINGTON: Political risks ranging from turmoil in Italy to potential impediments to euro area reform could hamper the world economy next year, a global banking group warned on Tuesday as it projected another year of sluggish growth.

Japan elections: Shares rise and yen weakens on Abe win

Japanese shares rose and the yen dipped after the Liberal Democratic Party, led by Shinzo Abe, won Japan's general elections.

Zuma Pushes South Africa Growth Plan Amid Investor Concern

South African President Jacob Zuma urged the ruling African National Congress to back a 20-year plan to expand the economy and create jobs, downplaying the need for radical policy changes as concern from investors mount.

UK car market defies predictions of triple-dip recession as Europe slumps

Britain was the only major car market in the European Union to expand this year, adding to signs that the UK economy could be recovering despite the ongoing eurozone crisis.

Fed extends aid to foreign banks

The Federal Reserve, along with four other central banks, announced Thursday that it will extend a program that keeps borrowing costs cheap for foreign banks that want to deal in U.S. dollars.

EU's Rehn says euro zone must pursue structural reforms

(Reuters) - Europe must continue with its "far reaching structural reforms" that have helped to rebalance the euro zone economy and rebuild confidence, EU's top economics official, Olli Rehn, said in an opinion piece in the Financial Times on Tuesday.

Dutch economy to take longer to recover: Central Bank

THE HAGUE: The Dutch economy will take longer than expected to recover and will remain above the European Union's deficit target for at least the next two years, the Dutch Central Bank said Monday.

Fed Is Likely to Sustain Its Stimulus Program

WASHINGTON — The Federal Reserve is widely expected to announce on Wednesday that it will continue buying Treasury securities to stimulate growth in the new year.

German Finance minister doesn't rule out Eurogroup candidacy: paper

(Reuters) - German Finance Minister Wolfgang Schaeuble declined to rule himself out as a candidate to replace Jean-Claude Juncker as chairman of euro zone finance ministers, in an interview published on Sunday.

Canada jobs surge surprise offers hope for fourth quarter

OTTAWA (Reuters) - Canada's economy churned out far more jobs than expected in November in a surprising comeback at a time of sluggish growth, offering hope of stronger fourth quarter economic showing.

US jobless rate falls to near four-year low

The US unemployment rate fell in November to a nearly four-year low and job growth picked up, showing only modest improvement in the economy, government data released Friday showed.

Greece sees no need for new debt 'haircut': Samaras

FRANKFURT: Greece is unlikely to need a new write-down of its debt, the country's prime minister Antonis Samaras said in a German newspaper interview on Thursday.

Australia's economic growth rate slows on spending cuts

Australia's economic growth rate slowed modestly in the last quarter as the government cut spending and earnings from exports declined.

E.U. Financial Ministers Clash Over Banking Supervisor Plan

BRUSSELS — Finance ministers of the European Union locked horns Tuesday over the creation of a single banking supervisor for the euro area, which is supposed to be a key tool for avoiding future financial crises.

Spain requests €39.5bn bank bail-out, but no state rescue

Spain's economy ministry said it had requested the disbursement of €39.5bn (£32bn) of European funds for its banking sector, as agreed under a June rescue deal.

UK manufacturing contraction eases, orders still fall

LONDON (Reuters) - British manufacturing activity shrank less than expected in November though the sector remained fragile as orders edged down, a survey found on Monday.

OECD says chance of quick Spain recovery 'remote'

MADRID: Spain is engulfed in a long recession with little hope of a quick recovery, the OECD club of industrialised nations said Thursday.

Democrats Harden Budget Positions

The White House and congressional Democrats hardened their budget positions on Tuesday and signaled they are prepared for partisan jockeying before any agreement to block impending spending cuts and tax increases can be reached with Republicans.

Weak UK Economy May Push Government To Make Further Spending Cuts - IFS

LONDON--U.K. Chancellor of the Exchequer George Osborne may be forced to announce billions of pounds of further spending cuts in next week's budget statement as the weak economy makes it increasingly difficult for him to meet his fiscal rules, a leading economic think tank said Monday.

Global recovery under threat, says OECD

Decisive policy action is needed to ensure the world is not "plunged back into recession", according to the OECD.

Spurred by crisis, euro zone is shaping up: study

BRUSSELS (Reuters) - The euro zone is turning into a more balanced and potentially more dynamic economy thanks to market pressure and the constant demand for structural reforms, a study showed on Monday.

Why the recovery is feeble

Federal Reserve Chairman Ben Bernanke last week became the latest economist to ask why the current economic recovery has been so weak.

Science fund cuts could hurt EU recovery, scientists warn

LONDON (Reuters) - Cutting science funding in the European Union would threaten economic recovery in the bloc, the heads of scientific organisations said on Friday after such cuts were proposed.

Ghana cedi recovery to continue: Fin Min

ACCRA (Reuters) - Ghana's cedi currency is expected to gain about 3 percent between now and the end of the year, in a continued recovery from heavy losses in the first six months, Finance Minister Kwabena Duffuor said on Thursday.

Average earnings rise by 1.4% to £26,500 says ONS

The average annual earnings of full-time workers in the UK rose by 1.4% to £26,500 in the year to April 2012.

Downgraded France says it needs more time

PARIS (AP) — France's government has shrugged off the latest downgrade of its credit rating, saying Tuesday that it just needs time for reforms to the sluggish economy to take root.

Britain must not burn bridges with Europe - business group

LONDON (Reuters) - Britain would damage its fragile economy and risk isolation if it ended its often stormy relationship with the European Union, business leaders said on Monday before critical EU budget talks later this week.

Monti repeats Italy does not need euro zone aid

(Reuters) - Prime Minister Mario Monti rejected suggestions on Saturday that Italy should seek aid from its euro zone partners to bind a new government to strict reform conditions after elections likely to be held in March.

China officials see growing global risks in 2013

BEIJING: China faces growing global economic risks in 2013, with the looming fiscal cliff in the United States, Europe's debt crisis and rising trade tensions all threatening growth in the world's second-biggest economy, senior officials warned on Friday.

IMF's Christine Lagarde says important for euro zone to forge deal on Greece

MANILA: A crucial Eurogroup meeting next week on Greece should forge a deal that will put the insolvent country's economy on a sustainable path, International Monetary Fund (IMF) Managing Director Christine Lagarde said on Friday.

Lacker says Fed should be on hold, not easing

(Reuters) - The Federal Reserve should keep monetary policy on hold rather than loosen conditions further given an anemic but ongoing recovery, Richmond Fed President Jeffrey Lacker said on Thursday.

French Economy Barely Grows as Hollande Faces Jobless Surge

France’s economy barely expanded in the third quarter, underlining the challenge President Francois Hollande faces in addressing the stagnation that is extending into its second year.

China’s Urban Champion Li Gets Task of Reviving Reform

China’s premier-designate is famed for running a province that saw three fatal conflagrations and an enduring HIV blood scandal on his watch.

Egypt plans new deficit-reduction steps: media

CAIRO (Reuters) - Egypt's government has proposed tax changes and reducing energy subsidies to cut a budget deficit running at about 11 percent of gross domestic product, Egyptian newspapers reported.

Geithner to lead Treasury into 2013

(Reuters) - Treasury Secretary Timothy Geithner plans to stay on into early next year to help the Obama administration forge a deal with lawmakers to avert a looming fiscal crisis, the White House said on Friday.

Euro Loses Most in 4 Months Against Yen on Fiscal Cliff, Greece

The euro slid the most in in four months versus the yen on concern a U.S. budget showdown known as the fiscal cliff will push the world’s biggest economy into recession and Greece will struggle for more rescue funds.

China economy: Latest numbers add to recovery hopes

China has reported encouraging economic data, indicating that growth in the world's second-largest economy may be rebounding.

Election Implications for Major Industries

The economy has been showing signs of life lately — more jobs, a better housing market and a pickup in spending by consumers.

European commission predicts UK recovery in 2013

The European commission on Wednesday forecast that George Osborne is likely to miss one of his key debt targets unless he takes action in next month's autumn statement – but also predicted that a struggling Britain would be the fastest growing of Europe's big five economies next year as it pencilled in a further year of stagnation for the austerity-hit nations of the single currency.

EU to predict dire 2013 for Spain: report

MADRID (Reuters) - The European Commission is to forecast Spain's economy will be almost as dire next year as this, a newspaper said on Tuesday, raising the pressure for a euro zone bailout and undermining government promises that 2012 will mark the low point.

France vows 'tough decisions' to revive economy

PARIS: President Francois Hollande pledged "tough decisions" after his government was Monday urged to cut labour costs by 30 billion euros ($38 billion) and the IMF warned that poor competitiveness was the French economy's biggest problem.

UK may need unorthodox policies to revive economy - Turner

LONDON (Reuters) - Britain may need to adopt more unconventional policies to revive its economy, one of the top candidates to become the next Bank of England governor said on Friday, citing recent efforts to spur bank lending to companies.

"Wage scar" threatens U.S. labor recovery: Manpower CEO

NEW YORK (Reuters) - A "wage scar" caused by workers accepting lower pay could slow the pace of U.S. economic recovery for years to come, the chief executive of global staffing services company ManpowerGroup said on Fri day.

Europe is 'main drag' on global recovery

NEW YORK (CNNMoney) -- The world's two largest economies have been showing signs of improvement, but experts say the recession in Europe remains the biggest challenge to sustained global growth.

Asian factories, US jobs show improvement

NEW YORK/BEIJING: Private U.S. firms stepped up hiring last month and factories showed modest improvement, surveys showed Thursday, while Asia's large economies started to pick up after a year of slower growth.

Sandy spending hopes drive rally for recovery companies

(Reuters) - Hurricane Sandy has caused tens of billions of dollars in damage up and down the U.S. East Coast, but the recovery and reconstruction spending that will follow could pump an almost equal amount right back into the economy, driving a rally for some stocks as markets reopened on Wednesday.

Greece agrees deal with creditors on austerity plan

Greece has reached agreement with its international creditors on new austerity measures necessary to release fresh bailout funds.

EU governments to debate 50 billion euros cut to budget

BRUSSELS: European Union governments will debate a cut of at least 50 billion euros this week as the starting point for negotiations on the bloc's proposed 1 trillion-euro ($1.3 trillion) long-term budget, a source familiar with the issue said.

Euro-Zone Data Hint at Resilience

The euro-zone economy continued to shrink in October but at a slower pace than in recent months an early gauge of activity showed, while a rise in consumer sentiment in Germany bolstered hopes that the slowdown there will be brief.

US economic growth up sharply in third quarter

The US economy grew more than expected in the three months to September, official figures showed. The world's largest economy expanded at an annualised rate of 2% in the third quarter, the Commerce Department said.

EU "sucks up decision-making:" UK's foreign secretary

(Reuters) - Britain is increasingly disillusioned with the European Union which it sees as a "machine that sucks up decision-making", Britain's foreign secretary said on Tuesday in prepared remarks.

Economic signs point up, but recovery lags

A number of economic indicators are pointing upward, but that is not translating into quick gains for the economy in Northwest Indiana or the nation as a whole, according to members of the Times Board of Economists.

World stocks mixed after US earnings disappoint

BANGKOK (AP) — World stock markets were mixed as traders unnerved by last week's disappointing U.S. corporate earnings results waited for another round Monday.

Monti expects to see Italy recovery signs within months

CERNOBBIO, Italy (Reuters) - Prime Minister Mario Monti said on Saturday he expected it would be only a few more months before signs of recovery start to emerge in the recession-hit Italian economy.

China shows signs economic recovery taking shape

BEIJING (AP) — China's worst slump since the global financial crisis leveled out in the latest quarter and retail sales picked up in a sign an economic rebound is taking shape, adding to hopes for a global recovery.

Sweden stands out as European refuge from debt crisis

STOCKHOLM: Of all the European economies providing shelter for investors avoiding the euro zone, Sweden is considered one of the safest bets thanks to its free-floating currency, strong budget record and developed bond market.

EU, U.S. to negotiate free-trade deal from spring 2013: officials

(Reuters) - Europe and the United States are set to launch trade talks early next year to deepen the world's largest trading relationship, EU and U.S. officials say, potentially unleashing billions of euros of new transatlantic business.

UK economy to 'return to growth' in second half of year

The UK's economy will rebound in the second half of the year, the Ernst and Young Item Club's latest report says.

Nobel-crowned European Union risks an uncertain future

PARIS: The European Union's Nobel peace prize comes just as a realisation is dawning that Europe's single currency - the EU's most ambitious project - has survived three years of incessant financial turmoil and is not going to break up.

Economic recovery: It's about getting past the cliff

WASHINGTON — Eventually, the economic recovery will pick up steam -- whether Barack Obama or Mitt Romney is in the White House.

Euro-Zone Factory Output Rises Again

Industrial production in the 17 countries that share the euro rose for the second straight month in August, driven by a surge in output of durable consumer goods that suggests southern European economies may be on the mend.

World economy to improve only slightly next year

LONDON: Next year offers only a slight improvement for a global economy hit by recession in Europe and slowing or moribund growth in Asia and the United States, according to Reuters polls of hundreds economists worldwide.

US trade deficit widens as exports fall

WASHINGTON: The US trade deficit widened in August, in line with analyst expectations, as US goods exports fell for the fifth consecutive month, a government report showed on Thursday.

French lawmakers adopt law on EU fiscal pact

(Reuters) - France's lower house of parliament adopted on Wednesday the law needed to enact a European Union fiscal discipline treaty obliging governments to balance their budgets or face sanctions.

David Cameron: Rebalancing UK economy 'slow and difficult'

The UK is going through a "slow and difficult healing process" as it rebalances its economy, Prime Minister David Cameron has said.

Global economic recovery weakening, says IMF

The global economic recovery is weakening as government policies have failed to restore confidence, the International Monetary Fund has said.

Canadian economy adds 52,100 jobs in September

TORONTO (AP) — Canada's economy turned in one of the strongest job creation months of the year in September, adding an eye-popping 52,100 new jobs, Statistics Canada said Friday.

Merkel to visit Greece as money running out

(Reuters) - German Chancellor Angela Merkel will make her first visit to Greece next week since the euro zone debt crisis erupted, in a show of support for Athens after it said it will run out of money at the end of November without fresh international aid.

Swiss KOF cuts 2012, 2013 growth view, cites weak global economy

ZURICH (Reuters) - Switzerland's KOF economic institute cut its growth forecasts for 2012 and 2013 on Friday, citing a spillover from the global economic slowdown, but still sees the pace of growth accelerating over the course of next year.

IMF to cut German growth forecast for 2012, 2013: paper

BERLIN (Reuters) - The International Monetary Fund will cut its German economic growth forecasts for both this year and for 2013 to 0.9 percent, the Handelsblatt daily said in a preview of an article to be published on Friday.

IMF: Global recovery 'will take at least six more years’

The global economy will not be back in “decent shape” until at least 2018, the International Monetary Fund’s chief economist has warned.

Euro-Zone Factory-Price Inflation Accelerates

The prices charged by euro-zone factories for their goods rose sharply in August, mainly due to higher energy costs, a development that could raise concern at the European Central Bank whose governing board meets Thursday to announce its latest decision on interest rates.

Europe blames UK for the eurozone debt crisis, says MEP Sharon Bowles

Lib Dem MEP Sharon Bowles explains why eurozone countries seems dead set on crushing the City - they blame Britain for the eurozone crisis.

Rajoy Raid on Reserves for Pensions Highlights Poll Needs

Spanish Prime Minister Mariano Rajoy’s unprecedented raid on a decade-old pension reserve fund to finance increased benefits comes less than a month before before regional elections as his popularity slumps.

Fitch affirms UK at AAA but warns on debt, economy

NEW YORK: Fitch Ratings affirmed the United Kingdom's AAA sovereign rating on Friday, but warned that government debt levels and lackluster growth could threaten that top-notch grade.

Japan Data Show Recession Risk Growing

TOKYO—Data released by the government Friday showed that Japan's economy may be slowing more than expected and could possibly move into a recession.

Spain Pledges Cuts to Meet Deficit Target as Bailout Looms

Spanish Prime Minister Mariano Rajoy’s nine-month-old government announced its fifth austerity package in what may be a move to head off tougher conditions demanded as part of a potential European bailout.

Beware the threat from an America recovery, Mr Cameron

David Cameron took a risk appearing on the David Letterman show in New York on Wednesday night. The often-razor sharped chat show host is not in the business of deferring to politicians even when they lead America's closest ally.

IMF's Christine Lagarde warns of more global growth cuts

The International Monetary Fund looks likely to cut its forecast for global growth next month when it updates its projections for the world economy.

U.S. consumers, businesses taking it slow

WASHINGTON (MarketWatch) — The U.S. manufacturing sector has contracted, consumers are watching their wallets and lawmakers in the nation’s capitol are fiddling their thumbs.

UK government borrowing rises to record August high

George Osborne's debt reduction plans took another blow last month as government borrowing hit its highest on record for any August.

China vows ongoing support to resolve eurozone debt crisis

BRUSSELS: China pledged continued assistance Thursday to help tackle the eurozone debt crisis, saying Europe was "on the right track" but needed to implement the measures agreed to fix its problems.

Finland's Europe minister Stubb questions need for EU treaty change

(Reuters) - Finland's Europe minister Alexander Stubb questioned the need for a change to the European Union's treaty, saying such a move would require too much time and raise uncertainty.

German faith in euro and EU lags behind French: poll

BERLIN (Reuters) - Almost two thirds of Germans think their country would be better off without the euro, according to a poll published on Monday which highlighted growing unease in Europe's largest economy about the costs of the euro crisis.

Spain must seek help to qualify for inclusion in debt buying plan: ECB policymaker

VIENNA: Spain would have to apply for a rescue package before qualifying for inclusion in the European Central Bank's plan to buy debt of struggling euro zone members, ECB policymaker Ewald Nowotny said.

Stocks, more than housing, seen as initial QE3 winners

(Reuters) - The Federal Reserve's new economic stimulus plan involves printing vast sums of money to help people buy homes, but over the next year the program could do more to boost the economy by lifting stock prices.

India PM warns policy logjam could slow growth to 5 percent

NEW DELHI (Reuters) - Indian Prime Minister Manmohan Singh warned on Saturday that a prolonged policy logjam could slow economic growth to 5 percent, a day after India unveiled long-delayed reforms aimed at reviving growth and preventing a credit rating downgrade.

UK unemployment falls as economy looks set to grow

LONDON (Reuters) - The number of Britons on unemployment benefits dropped in August by the largest amount in two years as companies created new jobs, raising hopes that improved prospects will allow consumers to spend more and get the recovery going.

China on track to meet 2012 growth target: Wen Jiabao

TIANJIN: China is on track to meet this year's target for economic growth and if needed the government could utilise a 100 billion yuan fiscal stability fund to boost growth, Premier Wen Jiabao said on Tuesday.

U.S. housing market recovering but price rises seen modest: Reuters Poll

WASHINGTON (Reuters) - The U.S. housing market is starting to recover and home prices will see modest growth this year and next, according to a Reuters poll, which also suggested the property market would get little boost from any Fed buying of mortgage-backed debt.

French Sentiment, Factory Output Rise, Point to Rebound: Economy

French business confidence climbed for the first time this year last month and factory output unexpectedly increased in July, suggesting the euro region’s second-largest economy may regain some strength.

Irish central bank chief "confident" on banks deal

(Reuters) - Ireland's central bank governor is confident that the country will get a deal in the euro zone on easing the terms of its bank debt, it is just a question of what it looks like, he said on Sunday.

Infrastructure development key to economic recovery: Chinese President Hu Jintao

VLADIVOSTOK: Chinese President Hu Jintao urged Asia-Pacific nations on Saturday to speed up infrastructure development to help face the "grave challenges" from the global economy, in comments that follow Beijing's unveiling of $157 billion in such projects.

US jobs growth slows, spurring QE speculation

US jobs growth slowed last month, underlining the challenge President Barack Obama faces in convincing Americans to give him another four more years in The White House.

Global growth eases as demand falls: JPMorgan

LONDON (Reuters) - Growth in the world's private sector economy eased in August as a modest expansion in services was coupled with stagnating demand for manufactured goods, a business survey showed on Thursday.

Australian economy grows 0.6pc in second quarter

Australia's economy enjoyed solid growth last quarter to again outpace its peers, with gross domestic product rising 0.6pc, moderating from the previous quarter when it jumped 1.4pc.

Greece must stick to reform vows, insists Germany

BERLIN: German Finance Minister Wolfgang Schaeuble said on Tuesday that Greece must stick to its reform promises to unlock bailout cash the debt-wracked country needs to stave off default and stay in the eurozone.

British leader Cameron to shake up his UK gov't

LONDON (AP) — British Prime Minister David Cameron is making the first radical overhaul of his Cabinet since taking office in 2010, amid a stalled economy and after a series of humbling policy reversals.

ECB must do more for euro: OECD's Gurria

BLED, Slovenia (Reuters) - The European Central Bank should do more to stem the crisis in the euro zone because the current financial facilities are not enough, the secretary-general of the Organisation for Economic Cooperation and Development (OECD) said on Sunday.

China's manufacturing slump deepens

NEW YORK (CNNMoney) -- More bad news about China's factories: The country's manufacturing sector has contracted for the first time in nine months.

UK economy needs infrastructure stimulus, says BCC

The British Chambers of Commerce has called for more government spending on infrastructure as it predicted that UK GDP would shrink by 0.4% in 2012. The BCC also cut its forecast for 2013, from 1.9% to 1.2% growth.

Bernanke speech may offer clues to Fed's next step

WASHINGTON (AP) — Few expect Chairman Ben Bernanke to signal at a Federal Reserve conference Friday in Jackson Hole, Wyo., that the Fed is about to take major new action to boost the economy. No one is sure, though.

German inflation accelerates to 2.0% in August

FRANKFURT: Rising fuel prices pushed German inflation back up to the key level of 2.0 percent in August, the first time this year that inflation in Europe's top economy has risen, data showed on Wednesday.

Indian PM drowned out in growing furor over "coalgate"

NEW DELHI (Reuters) - Indian lawmakers chanting "quit prime minister" drowned out Manmohan Singh on Monday as he sought to defend his government's role in an affair dubbed "coalgate" that has paralyzed parliament and created a sense of political crisis.

Weak U.S. recovery means pay cuts for unemployed who find jobs

WASHINGTON — The U.S. economic recovery hasn’t felt much like one even for people who managed to find new jobs after being laid off.

IMF advises delaying austerity until growth returns

Cutting government spending in a crisis will condemn a country to an even deeper recession and inflict “permanent” damage on the economy, the International Monetary Fund has warned.

German Leader Says Greece Must Remain in Euro Zone

BERLIN — Angela Merkel, the German chancellor, pledged Friday to support the new Greek government as it struggled to overhaul its economy, saying that the heavily indebted country must remain in the euro zone.

Global economy: Euro zone flounders, China brakes, US may slow

World business surveys on Thursday painted a picture of economic malaise stretching from Beijing to Berlin, adding to concerns that the world economy was slowing down.

Report Sees Risk of Recession if Budget Stalemate Persists

WASHINGTON — The Congressional Budget Office said Wednesday that the economic recovery would continue “at a modest pace” for the rest of the year, but that if Congress takes no action to stave off tax increases and automatic budget cuts scheduled for Jan. 1, the economy could fall into a recession.

Berlin douses hopes of quick euro crisis fix

BERLIN: Germany on Monday dampened hopes for powerful action from the European Central Bank to fix the euro crisis and slapped down speculation of an immediate breakthrough on debt-wracked Greece.

It's time to try something radical to save the UK economy

This Friday, the Office for National Statistics (ONS) will publish its second estimate for GDP growth and, for once, the economic news is expected to be encouraging.

Eurozone hurtling back into recession: Economists

FRANKFURT: The eurozone is hurtling back into recession, economists declared this week after official figures portrayed a shrinking economy.

Italy's Monti says not planning income tax cut

ROME (Reuters) - Italian Prime Minister Mario Monti said on Thursday his government is not considering cutting income taxes, denying a newspaper report that he was looking to such a move to revive the stagnant economy.

Foreign investment in China declines in July

Foreign direct investment in China fell 8.7 percent in July, the government said on Thursday, as the economy continues to feel the pinch of slowing global growth and the European debt crisis.

US retail sales jump unexpectedly in July

US retail sales jumped unexpectedly in July and by the biggest amount in five months, the Commerce Department said.

Germany's economy grows by 0.3%

Germany's economy grew 0.3% in the second quarter of the year, helped by exports and domestic consumption.

Japan GDP Points to Shaky Recovery

TOKYO—The Japanese economy slowed more sharply than expected in the April-June quarter as exports and consumer spending lost steam, raising the specter of further deceleration for the rest of this year.

London 2012: Mervyn King says banks 'could learn a thing or two' from Olympics

Banks could "learn a thing or two about fair play" from the Olympics, according to the governor of the Bank of England, who claimed that the Games' impact on confidence could boost the economy.

Spanish, Italian Two-Year Notes Drop on ECB Plan, Growth Concern

Spanish and Italian two-year government notes fell for the first time in three weeks amid concern a plan by the European Central Bank to cap the nations’ borrowing costs by buying their debt may founder.

Economy might be gaining traction, new data suggest

After a spring and summer of weak economic indicators, a flurry of fresh data suggest key sectors of the economy might be gaining traction, just as the battle for the White House enters the final round.

Shock trade figures deal a blow to UK recovery hopes

Britain's trade deficit widened sharply to a record high in June as exports collapsed amid the eurozone crisis, dealing a blow to hopes that trade will drive a recovery.

Sudan's pounds rises after oil deal with S.Sudan

KHARTOUM (Reuters) - Sudan's currency rose against the dollar on the key black market on Monday for the first time in several months after the government reached an agreement with South Sudan on oil fees, dealers said.

Manufacturing slowdown dents hopes for recovery

Britain's small and medium sized manufacturers have seen their biggest fall in output since October 2009, in a blow to hopes the sector will help drive economic recovery.

Italy's Monti warns Europe of 'psychological break-up'

Italy's Prime Minister Mario Monti has warned of a "psychological break-up" of Europe that must be contained.

Hiring picks up but not enough to sideline Fed

WASHINGTON (Reuters) - Employers hired the most workers in five months in July, but an increase in the jobless rate to 8.3 percent kept prospects of further monetary stimulus from the Federal Reserve on the table.

Shares surge after markets reappraise Mario Draghi's eurozone debt plans

Financial markets ended the week on a high note on both sides of the Atlantic after better US jobs news and renewed faith in the European Central Bank sent shares, bonds and oil prices surging.

U.S. housing market recovery key to boosting growth: IMF

WASHINGTON (Reuters) - The International Monetary Fund said on Thursday it believes a recovery in the U.S. housing market is key to eventually boosting economic growth in the United States and bringing down the country's unemployment rate.

Recovery hopes dented by weak manufacturing

Hopes that the economy will rebound strongly from recession have been dealt a severe blow by figures showing that the manufacturing sector shrank at its fastest pace in three years in July.

Economy to shrink in 2012: OECD economist

LONDON (Reuters) - Britain's economy looks set to shrink in 2012 after a surprisingly deep slump between April and June, as the euro zone debt crisis and weak domestic demand make a vigorous return to growth unlikely, the OECD's economist for the UK said.

S.Africa rate cuts can't be taken for granted:Marcus

DURBAN (Reuters) - Further interest rate cuts in South Africa will depend on growth and inflation in coming months and should not be taken as a given, central bank Governor Gill Marcus reiterated on Saturday.

U.S. job growth, economy stuck in doldrums

WASHINGTON (MarketWatch) — Slackening U.S. and global growth likely means the nation’s unemployment rate will remain stuck around 8%, reducing the odds of a faster economic recovery kicking in before the end of the year.

Britain Unleashed: Finance must be policed – not shut down

Free market thinking has not had a good crisis. Profit seems once again to be a dirty word, while many have come to believe the turmoil of the past five years is a direct consequence of decades-long Reaganomics and Thatcherite liberalisation.

Draghi pledges to save Europe's single currency; euro surges

FRANKFURT, GERMANY: European Central Bank head Mario Draghi promised on Thursday to do whatever it could to protect the European single currency and sent a strong signal that the central bank has the high borrowing costs that are crippling countries like Spain and Italy in its sights.

S.Africa growth seen lower, inequalities persist: WB

JOHANNESBURG (Reuters) - Growth in South Africa for 2012 is likely to be lower than earlier expected, the World Bank said on Tuesday, a day after Finance Minister Pravin Gordhan said the government would also lower its forecasts.

Manufacturing to fall as Britain left mired in recession

Britain’s manufacturing sector will shrink for the first time in three years in 2012, as official figures are expected to show Britain was locked in recession in the second quarter.

German minister: 'horror' of a Greek euro exit has faded

German Economy Minister Philipp Roesler on Sunday reiterated his doubts about whether debt-mired Greece would be able to stay in the eurozone, saying the "horror" of a potential exit had worn off.

Indian economy to grow at slowest pace in 10 years

BANGALORE (Reuters) - India's economy will grow at its slowest pace in a decade this fiscal year, with tight monetary policy, political gridlock and a weakening global economy prompting analysts to slash their forecasts, a Reuters poll showed on Thursday.

Fed sees 'modest' US growth, better housing sector

The Federal Reserve sees only modest growth in the US economy, with the long-depressed housing market as one of the few bright spots on the horizon, a report showed Wednesday.

ECB Noyer Expects Gradual French Economic Recovery 2nd Half, 2013

PARIS--Bank of France Governor Christian Noyer Wednesday said he expects a gradual economic recovery in France over the second half of this year and next year, so long as the government sticks to its deficit-reduction policy.

Bernanke: Libor system is structurally flawed

WASHINGTON (CNNMoney) -- Federal Reserve Chairman Ben Bernanke cast doubt Tuesday that a critical financial rate used by banks to set interest rates for loans is reliable.

IMF slashes UK growth forecasts

Britain’s growth prospects have dropped sharply over the past three months, according to the International Monetary Fund as the eurozone crisis weighs on recovery.

In Latest Data on Economy, Experts See Signs of Pickup

WASHINGTON — Despite the recent run of disappointing economic data, a broad range of experts and forecasters expect the economy to improve slightly in coming months, thanks to lower oil prices and new signs of life from sectors like automobiles and housing.

Bank of Japan stands pat on rates, sees recovery

HONG KONG (MarketWatch) — The Bank of Japan said Thursday that the economy will chart a path of moderate recovery despite global economic uncertainty, while leaving its policy interest rate unchanged in the current range of 0% to 0.1% by a unanimous vote.

Republic of Ireland growth in 2011 twice previous estimate

The Republic of Ireland's growth rate last year was double previous estimates at 1.4% but this year started badly, official figures show.

S.African factory output unexpectedly higher in May

JOHANNESBURG (Reuters) - South Africa's factory output grew above expectations in May compared with last year, backing the case for interest rates to stay unchanged at next week's policy meeting, although the central bank may cut them later this year to buoy the economy.

German Inflation Falls

FRANKFURT—Consumer price inflation in Germany, Europe's largest economy, fell in June to its lowest annual rate in a year and a half, the Federal Statistics Office said Wednesday, confirming its preliminary data published June 27.

Report highlights 'pick-up' in Scotland's economy

Scotland's economy fared better last month, with growth in both the manufacturing and service sectors, according to a survey.

Hong Kong May Revise Growth Forecast on Global Recovery C

The Hong Kong government may revise its 2012 economic forecast next month as the outlook for global growth deteriorates, Financial Secretary John Tsang said.

German president tells Angela Merkel to come clean on EU debt deal

Joachim Gauck, the German president, has ordered Chancellor Angela Merkel to clarify exactly what she agreed behind closed doors at the EU crisis summit ten days ago.

Canada's economy adds 7,300 jobs in June

TORONTO: Canada's unemployment rate inched down to 7.2 per cent in June as employers added 7,300 new jobs, Statistics Canada reported Friday.

Ireland returns to the debt markets with €500m sale of treasury bills

Ireland has returned to the bond markets for the first time since the €85bn IMF/EU bailout almost two years ago – a move hailed by European Central Bank chief Mario Draghi as "a success that should be properly celebrated".

Job market perks up

NEW YORK (CNNMoney) -- The job market may have perked up last month, according to three reports released Thursday.

Spain’s Banking Crisis Moves Into the Courtroom

MADRID — Spain’s banking crisis has moved into the courtroom.

ECB warns Greece as ministers plan softer bailout bid

ATHENS (Reuters) - The European Central Bank told Greece on Monday not to waste time trying to renegotiate its international bailout as government ministers hashed out a plan for easing its punishing terms before a review by the country's lenders.

Japan’s Industrial Output Falls Most Since 2011 Quake

Japan’s industrial output fell the most since the March 2011 earthquake and consumer prices declined, bolstering the case for extra stimulus to sustain the nation’s economic recovery.

French audit office sees 8 billion-euro gap in 2012 budget: paper

(Reuters) - France's national audit office will reveal a shortfall of almost 8 billion euros ($10 billion) in this year's national budget after discovering a 1.5 billion-euro spending gap left by the previous government and lower tax revenues, the Journal du Dimanche newspaper said on Sunday.

EU's new problem: How to persuade investors to buy and hold bonds of Italy, Spain

LONDON: As Europe slouches toward a monetary union that aims to force euro area governments to cede control over their banks and budgets, a crucial question remains unanswered: how to persuade investors to buy, and hold for the long term, the bonds of at-risk economies like Italy and Spain.

Slow economic recovery to weigh on U.S. banks: Citi

(Reuters) - Citi Investment Research cut its price targets and second-quarter outlook on several U.S. banks including Bank of America Corp (BofA) and Goldman Sachs as slow economic recovery hurts trading.

Germany must step up to save eurozone, George Soros says

George Soros has criticised Germany's "can't do" attitude and said it will be to blame if it blocks plans to rescue the single currency.

Cameron suggests cutting housing benefit for under-25s

The prime minister has suggested that people under the age of 25 could lose the right to housing benefit, as part of moves to cut the welfare bill. Scrapping the benefit for that age group would save almost £2bn a year.

Obama, where is the recovery?

(CNN) -- Two years ago this week, the Obama administration hailed the advent of the "Summer of Economic Recovery."

Greece seeks to extend austerity measures deadline by two years

ATHENS: Greece wants tax cuts, extra help for the poor and unemployed, a freeze on public sector lay-offs and more time to cut its deficit under a plan likely to run into strong opposition at a European Union summit next week.

Booming Iceland makes second early loan repayment to IMF

Iceland, whose economy has recovered rapidly following the 2008 collapse of its banking sector, on Friday repaid $483.7 million in loans to the International Monetary Fund.

UK inflation rate drops to 2.8% in May, says ONS

The UK rate of inflation fell last month to a two-and-a-half year low owing to slowing fuel and food prices.

Draft: G-20 will produce plan for global growth

LOS CABOS, Mexico (AP) — The leaders of the world's largest economies will portray themselves as united behind efforts to boost growth and job creation in order to repair a global economy roiled by fears over the European financial crisis, according to a draft of the statement to be released Tuesday at the end of the Group of 20 annual meeting.

Markets rise after Greek pro-bailout party win‎

LONDON - Investors have pushed stock markets in Europe and Asia higher after pro-bailout parties won enough votes in Greece's parliament elections to form a government.

Spain PM Rajoy says further reforms needed

Spanish Prime Minister Mariano Rajoy has said further action is needed to make the economy "more flexible and competitive" after the International Monetary Fund called for wider reforms.

Weak factories, sentiment show shaky U.S. recovery

WASHINGTON (Reuters) - Factory output contracted in May for the second time in three months and families took a dimmer view of their economic prospects in early June, signs that the economy's recovery is on shaky ground.

Eurozone industrial production falls in April

Output from eurozone factories fell by 0.8% in April, according to the latest official figures from EU body Eurostat.

India assures US of economic vigor

India insisted that its economy would regain vigor and satisfy foreign investors as it fended off US accusations of a worsening business climate ahead of high-level talks.

Fed report: Economic crisis set back median family net worth two decades

WASHINGTON — The recent economic crisis left the median U.S. family in 2010 with no more wealth than in the early 1990s, erasing almost two decades of accumulated prosperity, the Federal Reserve said Monday.

Surprise drop in UK manufacturing raises risk of longer recession

British manufacturing output posted a surprise fall in April, raising the risk of a longer recession and piling pressure on the Government to take action to boost growth.

Investors see Spain rescue as only 'temporary fix'

NEW YORK: Investors aren't sold on a rescue of Spanish banks.

Osborne: Euro zone crisis "killing" UK recovery: report

LONDON (Reuters) - The euro zone debt crisis is "killing off" Britain's fragile economic recovery and European leaders are close to the "moment of truth" after more than two years of uncertainty, British finance minister George Osborne wrote in a newspaper article.

A 12-Step Program for India’s Economic Recovery?

Indian industry leaders gathered on June 4 in New Delhi to unveil their solution to India’s unfolding fiscal crisis: a 12-step program to economic recovery.

Fed's Rosengren warns on growing economic risks

(Reuters) - Risks to the world's economic and financial outlook are growing again and affecting the behavior of households and businesses, a top U.S. Federal Reserve official said on Thursday.

'Remarkable' Australian economy steams ahead

Australia Wednesday hailed as "remarkable" the 1.3 percent growth in its mining-driven economy in the first three months of 2012, as consumer spending rallied and business investment boomed.

Ireland's recovery is still green

After the "Yes" vote on the European Union's fiscal pact and backed by some encouraging signals in the economy, Ireland is fast becoming Europe's austerity poster pin-up.

Spain seeks direct EU bank aid, Germany resists‎

BERLIN, GERMANY - Spain is pressing for direct European financial aid to rescue its debt-ridden banks, but Germany is holding steadfast against such assistance without imposing new spending conditions on the Madrid government.

Economy is Slowing, Obama Can't Help, at Least Before November

President Obama’s economic recovery is caught in a tractor beam. He has long since abandoned major efforts to accelerate growth and job creation through government stimulus; now, there’s no way he could get them in time to dent the unemployment rate before November, even if he wanted to.

Slowdown worsens as China cools, Europe sinks

LONDON/SINGAPORE: Some of the world's major economies are faltering or shrinking, with Chinese factory output barely growing and powerful European manufacturing countries falling deeper into malaise, surveys showed on Friday.

Polish economy grew at lower pace of 3.5 percent

WARSAW, Poland (AP) — Poland's economy grew 3.5 percent year-on-year in the first quarter, a slowdown compared with last year but still one of the strongest rates in the European Union, according to government data released Thursday.

Swiss economic growth accelerates despite euro zone crisis

ZURICH: The Swiss economy grew more than expected in the first three months of the year thanks to strong private and public consumption, even as exporters tussled with a stubbornly strong franc and crisis in the euro zone.

Cut taxes to rescue recovery, BarCap says

The Government must cut taxes and instruct the Bank of England to buy bank bonds through quantitative easing to break the UK’s “slow and measly recovery”, Barclays Capital has said.

Hopes for US recovery, China stimulus help markets

LONDON (AP) — Global markets rose Tuesday on signs of improvement in the U.S. housing market and on hopes China will act to support growth in its economy, the world's second-largest.

S.Africa Q1 GDP growth seen slowing to 2.4 pct q/q

JOHANNESBURG (Reuters) - Economic growth in South Africa is expected to have slowed to 2.4 percent in the first quarter from 3.2 percent in the previous quarter due to a slump in the mining and manufacturing sectors.

UK economy could shrink by 2pc if Greece exits euro

The UK economy could be plunged even deeper into recession with a GDP contraction of up to 2pc if Greece is forced into a disorderly exit from the eurozone.

Greece, not EU, will drive recovery: Greece's central bank Governor

ATHENS: The governor of Greece's central bank insisted on Thursday that Athens and not European Union leaders will drive the country's recovery from a crisis that threatens its place in the eurozone.

Election risk: Could Europe sink Obama campaign?

NEW YORK (CNNMoney) -- Trillions in looming tax hikes and spending cuts. Washington saber-rattling over the debt ceiling.

Rows break out over eurozone woes

Eurozone leaders have come under fire for failing to deal with the political divisions and crippled banks that pose as big a risk to the single currency as Greece.

Wealthy eurozone countries must back weak nations, George Osborne warns

The wealthiest eurozone nations must support the weaker, indebted nations such as Greece and Portugal or face the prospect of the currency union breaking up, George Osborne has warned.

Japan's economy grows 4.1 percent amid recovery

TOKYO (AP) — Japan's economy grew an at annual rate of 4.1 percent in the first quarter amid a gradual recovery from last year's catastrophic earthquake and tsunami.

Barack Obama tells EU: boost growth now or face a global crisis

Barack Obama is to put pressure on Germany to ease the pain of austerity with policies to boost growth, as he uses two days of talks with the G8 industrial nations to warn Europe that it needs to act swiftly to spare the world economy from a second deep recession in four years.

Turn off your iPad, David Cameron, and start dealing with Britain's debt

The Prime Minister David Cameron talks about fiscal sanity but is borrowing like a drunken Keynesian.No one dispenses advice to the eurozone better than David Cameron.

German economy powers on, French growth evaporates

BERLIN/PARIS (Reuters) - Germany's economy confounded expectations by posting robust growth in the first quarter of the year while France could summon up none at all and Italy slid further into recession, data showed on Tuesday.

Interest rates expected to remain 'on hold through 2013'

Sir Mervyn King, the Governor of the Bank of England, is expected to signal on Wednesday that interest rates will not rise from their record low until late 2013 at the earliest, as the UK's growth disappoints.

USIBC President Ron Somers slams slow pace in India's economic reforms

WASHINGTON: Expressing frustration over the current pace of economic reforms in India, US India Business Council (USIBC) President Ron Somers has warned New Delhi that investors have "myriad alternatives" and it "must compete for capital".

Analysis: China growth risks signal need for fiscal action

BEIJING (Reuters) - China may need a back-up plan to stop economic growth being cut short by a surprise dip in demand at home and abroad that suggests monetary policy easing steps taken since the final quarter of last year are insufficient to deal with the downturn.

EU's Rehn against debt funded growth, backs Spain plan

TALLINN (Reuters) - The European Union's top economic official on Saturday warned against funding national growth packages with new debt and urged governments to stick with structural reforms and cuts to fiscal deficits as the route out of the region's economic crisis.

Eurozone economy to shrink by 0.3%, EU Commission says

The eurozone economy is forecast to shrink this year as its debt crisis continues to bite. The European Commission's spring forecast confirmed its prediction of a 0.3% contraction in 2012 in the economies of the 17 countries that use the euro.

Queen's Speech 2012: Coalition sets sights on 'restoring economic stability'

Retail and investment banks will be split, employment tribunals curbed and executive pay tackled by new legislation revealed in a Queen's Speech designed to "restore economic stability".

German industrial production surges in March

German industry recorded a surprise surge in output in March.

Unemployment set to keep on rising, says forecaster

Unemployment in most parts of the UK is likely to continue to rise over the next five years, according to an economic forecasting group.

Jobs report crucial to presidential election outcome

(CNN) -- Hands down, it's the most important monthly economic report in the race for the White House.And April's numbers from the Labor Department didn't provide President Obama a lot to brag about.

Europe must balance austerity with growth, says EU's Olli Rehn

BRUSSELS: Europe needs to balance cutting its debt with measures to stimulate growth, the region's top economics official said on Saturday, as austerity threatens to drag the bloc into its second recession in three years.

Syria economy faces 'significant' contraction: IMF

Syria's economy is expected to contract significantly in 2012 due to 14 months of violence and sanctions, a top official at the International Monetary Fund said on Wednesday.

Debt inequality is the new income inequality

NEW YORK (CNNMoney) -- The rich are getting richer, and everyone else is going deeper into debt trying to keep up.

Canadian manufacturing PMI hits 2012 high in April

TORONTO (Reuters) - The pace of growth in Canadian manufacturing advanced at its strongest rate of the year in April as business conditions improved for a third straight month, reflecting a slow but steady recovery in the export-reliant sector.

Bill Clinton says economic recovery ahead of pace looking back up to 500 years in history

Former President Bill Clinton defended President Obama and his handling of the nation’s economic recovery Sunday night, saying “we are beating the clock” historically in comparison to Japan and other economies that have been through similar tumult.

Big Three's biggest problem is Europe

NEW YORK (CNNMoney) -- Detroit's biggest problems aren't behind it. They're about 4,000 miles to the east.

Recovery hopes hit by two-way pull

Deepening confusion over the health of the recovery looms this week as the latest snapshots of Britain's major industries point to steady growth, despite official figures plunging the UK into a double-dip recession.

Fed stands pat but says will act if needed

(Reuters) - Federal Reserve Chairman Ben Bernanke on Wednesday said U.S. monetary policy was "more or less in the right place" even though the central bank would not hesitate to launch another round of bond purchases if the economy were to weaken.

U.K. in recession for 2nd time since 2008

NEW YORK (CNNMoney) -- Britain's economy declined for the second straight quarter, the U.K. government said Wednesday, in a sign that the nation has entered a recession for the second time in four years.

Spain remains under pressure at short-term debt sale

(Reuters) - Spain's short-term borrowing costs nearly doubled compared with a month ago at auctions on Tuesday, even though it opted to sell relatively small amounts of debt given investor doubts about its shrinking economy and a new flare-up in the euro zone crisis.

Greece worse off staying in euro, says Ifo

Greece's ability to recover competitive economic standing will be severely constrained if it continues to use the euro, and other indebted eurozone countries will likely face similar struggles, the head of Germany's prominent.

Germany sees upswing amid eurozone turmoil

FRANKFURT, Germany (AP) — A key index of business optimism on Friday reinforced what an increasing number of economists are saying: Germany is beginning to see an upswing — even as the rest of the 17-country eurozone struggles with economic and financial turmoil over too much debt.

Economists: Sluggish recovery here to stay

NEW YORK (CNNMoney) -- The recovery is still chugging along at a sluggish pace, and unfortunately, it looks like it may stay that way for a while.

IMF Gets $320 Billion in New Pledges to Raise Resources

International Monetary Fund Managing Director Christine Lagarde said she expects more contributions after landing pledges of about $320 billion in her campaign for bigger reserves to combat threats to global growth.

Britain faces £50bn more spending cuts and tax rises to cover elderly care, warns IMF

Britain faces another £50bn of spending cuts and tax rises to cover the costs of age-related care and put the national debt under control, the International Monetary Fund has warned.

IMF sees 'optimism return' as faster growth predicted

Washington - The International Monetary Fund is a little more optimistic about global economic growth as European nations have taken action to cope with their debt crisis, and the U.S. economy grew a little faster.

Swiss banks to hand over staff names in US tax row: Report

ZURICH: Switzerland will allow banks to hand over the names of any employees and other third parties who helped wealthy Americans evade taxes to US prosecutors, a Swiss newspaper reported on Saturday.

Analysis: China currency move nails hard landing risk coffin

BEIJING (Reuters) - China's weekend reform of its currency regime nails shut the coffin on the last remains of doubt about whether the world's second biggest economy has successfully steered a course past a hard economic landing.

UK economy needs schoolchildren to learn languages, BCC says

Studying a foreign language should be compulsory until the age of 16 if Britain is to become a nation of exporters, a business group has warned.

China economic growth expected to dip to three-year low

China is expected to report its weakest growth numbers in almost three years later on Friday as global and domestic issues hurt its economy.

Economy picking up, exports better: Japan

TOKYO (Reuters) - Japan's government stuck to its assessment that the economy is slowly recovering on Thursday but raised its view on exports, saying overseas shipments are showing signs of stabilizing on a moderate pickup in the United States and some return in Asian demand.

Germany Grows Robust from Sick Man With Demand at Home

Germany’s economic expansion is increasingly home-grown.Unemployment at a two-decade low, wages accelerating out of years of restraint and falling borrowing costs are spurring consumers in Europe’s linchpin economy to spend more.

Manufacturing Is Key to Economic Recovery: Opinion

NEW YORK (TheStreet) -- Barack Obama and his Republican challengers don't agree about much, but they do agree that the U.S. economy can't be turned around -- and middle class prosperity saved -- without a strong contribution from manufacturing.

UK economy grew 0.1% to avoid recession, says NIESR

The UK economy has avoided a double-dip recession by the narrowest of margins, a leading thinktank predicted after a manufacturing slump underscored the fragile nature of Britain's recovery.

Jobs recovery suffers setback in March

(Reuters) - Employers hired far fewer workers in March than in previous months, keeping the door open for the Federal Reserve to provide more monetary support for a still sluggish economy.

IMF: Portugal is on track but big risks remain

LISBON, Portugal (AP) — Bailed-out Portugal's economic recovery program is proceeding as planned but "formidable challenges" stand in the country's path amid a steep recession and market misgivings about Europe's response to its debt crisis, the International Monetary Fund said Thursday.

UK business optimism rises as fears of double-dip recession and a eurozone break-up fade

Business optimism is rising at its fastest rate since 2007, as fears over an imminent eurozone break-up abate, though companies are still opting for the safety-first option of hoarding cash.

U.S. manufacturers pick up pace in March

WASHINGTON (MarketWatch) — American manufacturers expanded at a somewhat faster pace in March and most industries experienced growth, according to a closely followed survey.

Jean-Claude Trichet: 'We need to go further’

In his first public interview since stepping down as head of the European Central Bank, Jean-Claude Trichet tells Charles Moore why he believes that Europe needs unity.

U.S. job growth seen tapering off slightly

WASHINGTON (MarketWatch) — Picture this: Job creation is on the upswing, consumers are spending freely and executives are more confident about their business. Things are looking up.

British Economy Shrinks More Than Expected

LONDON — The British economy shrank more than previously expected in the fourth quarter of 2011, but some economists said that improving conditions in Europe could keep the country from falling back into a recession.

Global economy shows 'very fragile' improvement: IMF

BANGKOK: Recent improvements in the global economy are "very fragile" and an escalation of the eurozone crisis remains the most immediate concern, IMF deputy managing director Naoyuki Shinohara said Tuesday.

Merkel: Greek euro exit would be "catastrophic"

LONDON (Reuters) - Greece's exit from the euro would be a "catastrophic" political and economic mistake that would severely weaken Europe's single currency bloc, German Chancellor Angela Merkel said in a BBC interview broadcast on Monday.

Ben Bernanke warns jobs recovery may be 'out of sync' with economic picture

Federal Reserve chairman Ben Bernanke has warned that the recovery in the job market remained fragile – but said he believed cyclical, not structural, problems were to blame.

Euro Leaders Need to Step Up Austerity, Finland’s PM Says

European policy makers can’t rely on the central bank to manage the region’s crisis and must now follow with measures to cut debt and restore economic confidence, Finland’s Prime Minister Jyrki Katainen said.

Recovery program seeks to revamp local businesses

One committed Rhode Islander has been working for the past two years to help small businesses combat difficult economic times.

Economic recovery looks more certain: Japan govt

TOKYO: Japan's government maintained its assessment that the economy is slowly picking up in a report on Wednesday but saw a brighter outlook than a month ago due to encouraging signs in the global economy.

Europe faces 'long, hard road' to recovery, US treasury secretary says

Europe is only at the beginning of a "very tough, very long, hard road" to recovery and its future is still a threat to the US economy, Timothy Geithner, the treasury secretary, warned on Tuesday.

Inflation falls again as energy bills ease

Inflation continued to fall last month as lower energy bills eased the pressure on UK households, but economists warn high petrol prices and drought risks to food crops could soon see prices tick higher again.

Global economic growth to slow this year: IMF's Zhu

HONG KONG: Global economic growth will slow this year, though it is faring better with the United States looking much improved, the International Monetary Fund's deputy managing director Zhu Min said on Monday.

Greece recovers more of the 8bn euros of lost tax

Greece has collected almost 1bn euros ($1.3bn; £830m) in back taxes, still a fraction of the amount outstanding.

US, Britain agree to emergency oil stocks release, Reuters reports

LONDON — Britain has decided to cooperate with the United States in a bilateral agreement to release strategic oil stocks, two British sources said, in an effort to prevent high fuel prices derailing economic growth in an election year.

Broad trade deficit measure hits 3-year high

WASHINGTON – The U.S. current account deficit, which includes the trade balance of goods, services and investment flows, widened at the end of 2011 to the largest quarterly gap in three years.

Bailout can make Greek debt sustainable, but risks remain: EU/IMF

(Reuters) - Greece's second bailout package can make its debt sustainable, but Athens will have to stick firmly to agreed policies until 2030 and may need more money after 2014, an updated debt sustainability analysis by international lenders shows.

UK recovery has been weaker than in US, Germany, France and Canada

Britain has slipped behind Brazil in the global economic league table. The Bank of England has now kept the official cost of borrowing at 0.5% for three years and is part way through a third dose of electronic money creation.

Global liquidity peak spells trouble for late 2012

Data collected by Simon Ward at Henderson Global Investors shows that M1 money supply growth in the big G7 economies and leading E7 emerging powers buckled over the winter.

European Markets Extended Recent Recovery After Greek Situation Resolved

(RTTNews.com) - The European markets finished higher again on Friday, extending their recovery following Tuesday's sharp decline.

U.S. Trade Deficit Widens

The United States trade deficit surged to the widest imbalance in more than three years in January as imports hit an all-time high, the Commerce Department reported Friday, reflecting demand for foreign-made cars, computers and food products.

Don't tax pensions, George Osborne told

In a move that would be worth up to £1,000 a year each, the Office for Tax Simplification said that scrapping the levy should be considered because many pensioners considered it “unjust”.

Private sector adds 216,000 jobs in February

NEW YORK (CNNMoney) -- Hiring in the private sector picked up in February, according to a report released Wednesday by payroll processor ADP.

Australia aims for surplus despite economy slowing

CANBERRA, Australia (AP) — Australia's Treasurer said his government remains committed to returning the national budget to surplus next fiscal year despite the task becoming more difficult with slower than expected economic growth.

Hiring, key to U.S. recovery, on upswing

WASHINGTON (MarketWatch) — There’s a growing sense among economists that the U.S. recovery is gaining steam, a view heavily supported by a marked improvement in jobs data.

Canada's economy grows 2.5 percent in 2011

OTTAWA: Canada's economy grew 2.5 percent in 2011, down from 3.2 percent in the previous year, but it is much better than the economists' estimates a few months ago, and also slightly higher than the central bank's prediction in January, Statistics Canada announced.

Spain faces recession, growing unemployment in 2012

Spain's gross domestic product will shrink 1.7 percent this year and the jobless rate will climb to 24.3 percent, the government said Friday.

Bernanke: Economic recovery 'uneven'

NEW YORK (CNNMoney) -- In day two of Ben Bernanke's semi-annual testimony before Congress, the Federal Reserve Chairman warned lawmakers that their short-term policies could put the recovery at risk.

EU Leaders to Meet On Greece, Growth

BRUSSELS—European leaders and finance ministers will meet Thursday and Friday in Brussels to finalize the second Greek bailout package and discuss measures to promote long-term growth, but there will be no decision on boosting the euro-zone rescue fund, EU officials said.

Economic recovery still years away?

WASHINGTON — The stagnant job growth that has plagued the American economy for more than three years is finally showing signs of easing, but it still could take years before the nation returns to the levels that preceded the economic collapse of 2008.

G20 chiefs: Europe needs a bigger financial firewall

NEW YORK (CNNMoney) -- European leaders have taken "substantial" steps to contain the eurozone debt crisis, but they need to build a stronger financial firewall to ensure the safety of the global economy, top finance officials said Sunday.

Tanzania economy may grow 7 pct in 2012/13: World Bank

DAR ES SALAAM (Reuters) - Tanzania's economy could rebound to 7 percent growth in 2012/13 if the global economy recovers, with gas revenues expected to boost domestic growth in the next decade, a World Bank official said on Friday.

Structural reforms needed even in recovery: OECD

Reuters) - The recent financial crisis and sluggish recovery around the globe have rightly helped spur governments to take on structural reforms such as in the labor, retirement and tax sectors to the benefit of many nations, the OECD said on Friday.

ECB's Draghi says euro zone recovering slowly

FRANKFURT (Reuters) - The euro zone economy is on the mend after a very weak end to 2011 and there have been more positive signs over the last two weeks, European Central Bank President Mario Draghi was quoted on Thursday as saying.

Surging gas prices threaten to derail economic recovery

The average cost for regular gasoline in California has climbed past $4 a gallon, with prospects for even higher prices ahead. The recent dramatic increases nationally and statewide could hurt consumers and, in turn, the broader economy.

US recovery real – but vulnerable

While the gains so far may be modest, evidence suggests the US recovery is gathering strength and could finally be on track to regaining its old form.

Economic Growth Called Priority for Philippines

Philippine Finance Secretary Cesar Purisima Saturday said he viewed encouraging economic growth a key policy priority for the country's government and central bank this year, saying there could be room for further interest rate cuts because of continuing economic uncertainty in Europe and the U.S.

Greek cabinet tackles austerity, rescue hopes rise

ATHENS: Greece's cabinet tackled on Saturday how to implement austerity demanded by the EU and IMF as a 130-billion-euro ($171-billion)rescue seemed within reach, while the euro zone considered modifying a deal with private creditors to help Athens reduce its huge debts.

Nicolas Sarkozy admits David Cameron was right to veto European treaty

Drawing a line under months of bitter clashes over the future of Europe, Mr Sarkozy said he might have done the same if his country was threatened in a similar way.

OECD sees German growth at 0.4% in 2012: Economic ministry

BERLIN: The Organisation for Economic Co-operation and Development (OECD) has predicted that Germany, Europe's top economy, will grow by 0.4 percent this year, the economy ministry in Berlin said on Tuesday.

Soros: Shale Gas and Oil Prompting Economic Recovery

Millionaire investor George Soros attributes part of his favorable economic outlook for the U.S. to the nation's shale resources, he said in a weekend TV interview.

Obama proposes $800 million in aid for "Arab Spring"

WASHINGTON (Reuters) - The White House announced plans on Monday to help "Arab Spring" countries swept by revolutions with more than $800 million in economic aid, while maintaining U.S. military aid to Egypt.

European Leaders ‘Confident’ Greece Meeting Bailout Demands

Feb. 13 (Bloomberg) -- Germany and the European Commission welcomed Greek approval of the austerity steps demanded for a financial lifeline, suggesting euro finance chiefs will pull Greece back from the brink when they meet in two days.

Retail sales key to U.S. economic recovery

WASHINGTON (MarketWatch) — If the U.S. economy is to continue to chug along, consumers will have to take the lead.

BHP mulls production cuts as prices fluctuate

Global mining giant BHP Billiton warned that it could scale back production at unprofitable operations as commodity prices softened due to economic uncertainty.

As Economy Slows, India Awakens to Need for Foreign Investment

NEW DELHI — When India’s finance minister, Pranab Mukherjee, flew to Chicago recently to address a group of American executives, it was to deliver an urgent message: India is still open for business.

ECB will particiapte in Greek debt writedown: report

PARIS: The European Central Bank will participate in a sharp writedown of Greece's debt currently under negotiation in Athens, the Wall Street Journal reported on Wednesday.

With job spurt, US economy races ahead of Europe

The latest surge in US job creation suggests the world's biggest economy is gathering momentum -- in contrast with the recession taking hold in parts of Europe.

Analysis: Euro zone strugglers lack innovative knack

LONDON (Reuters) - To get an idea of the economic mountain euro zone strugglers Greece and Portugal have to climb, consider this: per million inhabitants, they each filed fewer than eight applications with the European Patent Office in 2010.

Economy moving in right direction

Economists are more optimistic that the economy is gaining momentum, based not only on job growth but other positive reports.

Europe gets bond market respite, real economy pain

MADRID/FRANKFURT (Reuters) - Spain and France gained fresh relief at bond auctions on Thursday, extending a rally in euro zone government debt markets since the European Central Bank flooded banks with cheap money in December.

China Economy Heading for ‘Hard Landing’ as Exports Decline, Shilling Says

Feb. 2 (Bloomberg) -- China’s economy is headed for a “hard landing” this year as weaker demand overseas chokes off exports, said Gary Shilling, who correctly forecast the U.S. recession that began in December 2007.

Portugal Pulls Off Debt Auction, but Fears Remain

MADRID — Portugal easily sold a new batch of short-term debt Wednesday, lifting some of the gloom after a recent surge in its borrowing costs amid concerns that the country will have to follow Greece in seeking a new bailout.

Budget Treaty: Neither Panacea Nor Poison

BERLIN—As German Chancellor Angela Merkel sees it, Europe's new "fiscal compact" on budget discipline will turn the euro zone into a more-perfect currency union.

Japan's industrial output rise lifts recovery hopes

Japan's uncertain post-catastrophe economic recovery appeared to be tentatively gaining traction as official data showed industrial output rose by more than expected in December.

Economy Likely Ended 2011 With Strong Growth

A weak year for the economy likely ended on a hopeful note.

Fed: Full economic recovery could take 3 more years

WASHINGTON — The Federal Reserve signaled Wednesday that a full economic recovery could take nearly three more years, and it went further than ever to assure consumers and businesses that they will be able to borrow cheaply well into the future.

Economic recovery depends on political stability

January's stock market has been sending good signals for 2012. The Dow Jones average has moved up in an orderly fashion, with none of the wild, three digit daily swings that were almost the norm in 2011.

State of the Union Centers on Economic Recovery

Economic recovery was the theme of President Obama's State of the Union speech Tuesday night.

California's economic recovery gathers steam in December

The evidence keeps accumulating: California's economic recovery is gathering momentum. It's just nowhere near a boom yet.

Economy improves but recovery hurdles persist

WASHINGTON (Reuters) - The number of Americans filing for new jobless benefits dropped to an almost four-year low last week, and factory activity in the mid-Atlantic expanded moderately, suggesting the economy carried some momentum into the new year.

Greece's ancient sites to play starring role in recovery

Crisis-hit Athens has turned to the glory that was Greece to help its ruined economy.

Economic forecast for CO, U.S. in 2012

DENVER - As a financial expert, he says he's 'cautiously impressed' by the economic recovery of Colorado and the United States.

Economic analysts say 2012 will be like last year

Economic growth and job creation this year could look a lot like last year, a Federal Reserve system economist told a Denver audience Wednesday morning.

Model industry: carmakers suggest UK route to economic recovery

There is an air of refinement to the Bentley factory in Crewe. Timeless skills more akin to furniture making than automotive production remain at the heart of this elite British manufacturer.

U.K. Recovery Halts On Eurozone Political Uncertainty: ITEM Club

(RTTNews) - Political uncertainty in the Eurozone has paralyzed the U.K. recovery and the economy has entered a technical recession, the Ernst & Young ITEM Club said in its quarterly forecast on Monday.

Recovering economy stabilizing state budget

A gradually recovering economy is helping stabilize Michigan's long-suffering state budget, even leaving a surplus that could be spent over the next year or two, state officials said Friday.

Talk of the future: Economic conference speakers urge supporting entrepreneurs, shunning taxation to spur recovery

OROVILLE — Talk about recovery and the future, and it's all about what happens to businesses.

The Worst Economic Recovery Since The Great Depression

The record of President Obama’s first three years in office is in, and nothing that happens now can go back and change that.

Federal Reserve pays $77B to Uncle Sam

WASHINGTON – The Federal Reserve paid the federal government $76.9 billion in 2011, the second highest amount in history.

China promises to boost business without creating a bubble

BEIJING – China's central bank is promising to channel lending to entrepreneurs who have been battered by weak global demand while keeping consumer prices and surging housing costs in check.

200,000 new jobs are positive sign in US recovery

 Employers in the United States added 200,000 jobs last month, the Labor Department said on Friday, a report that came on the heels of a flurry of heartening economic news and signaled gathering momentum in the recovery.

Investors brace for European hit on earnings

(Reuters) - Investors are about to find out if the economic woes in Europe are going to deliver a deep wound to U.S. company earnings instead of the mere scratch that many expect.

Market optimism tempered by European bank worries

LONDON (AP) — Stock markets retreated Wednesday as the early year optimism over the U.S. economy was tempered by renewed worries over Europe's banking sector.

Obama highlights recent economic successes

WASHINGTON -- Bullish yet wary, President Barack Obama is highlighting recent economic bright spots while taking care not to overstate a recovery that still has not put millions back to work.

In Euro Zone’s Crisis, Technocrat in Paris Works Behind the Scenes

PARIS — With France widely expected to lose its vaunted AAA credit rating any day now, the government here is bracing for the fallout.

European recovery? Wait till 2013 (at least)

NEW YORK (CNNMoney) -- Don't expect the economic problems dogging Europe to be solved any time soon. Economists sure don't.

For economic growth in 2012, there's little margin for error in U.S., abroad

WASHINGTON — It began with such promise. This time a year ago, forecasters were racing to upgrade their outlooks for what 2011 would hold.