Significant Review for Week ended 11/4/2008

Consumer confidence in the U.S. as measured by the University of Michigan’s consumer sentiment index fell to a 26-year low of 63.2 in April from 69.5 in March on concerns over the job market and rising inflationary pressures.

U.S. export growth rose to 20.8% in February from 16.7% in January as the weaker dollar made U.S. products more competitive. However, import growth accelerated to 16.4% in February from 12.4% in January over the same period. As imports outpaced exports,the cumulative trade deficit for the first two months of 2008 widened to US$121.3 billion from a deficit of US$115.6 in the same period last year.

Crude oil prices rose to a record high of US$110.87/barrel on Wednesday on renewed concerns over a weak US dollar and tight oil supplies before easing to close at US$110.14/barrel to register a weekly gain of 3.7%.

On the regional front, China’s export growth accelerated to 30.6% in March from 6.5% in February due to increased exports to U.S. and Hong Kong. However, import growth eased to 24.6% from 35.1% over the same period. China’s cumulative trade surplus for 1Q2008 narrowed by 10.5% to US$41.4 billion compared to the same period last year.

On the local front, industrial production growth eased to 6.3% in February from a revised 7.6% in January on slower manufacturing activities amidst lower electronics orders from the U.S. Due to the weakening of the U.S. dollar against major currencies, the Ringgit registered a weekly gain of 1.3% against the U.S. dollar to close at RM3.151.