Fed officials favor QE3; Asian data signal drop in global demandSubmitted by DeMolay on Mon, 07/09/2012 - 05:02
Asia's biggest exporters showed further signs of slowing down in data published on Monday, signaling a fresh slide in global demand, as two top U.S. Federal Reserve officials said they favored easing monetary policy to boost growth.
Japan's core machinery orders in May plunged 14.8 percent from April, with the key gauge of capital spending sinking far below analyst expectations of a 3.3 percent decline. That raised the risk that growth momentum in the world's No. 3 economy will stall if firms start to scale back investment.
Meanwhile consumer inflation in China, the world's second biggest economy, eased more than expected in June, with producer prices in outright deflation for a fourth month.
The numbers signal that demand for goods from the nation's vast factory sector - especially from foreign customers - is declining as the global economy weakens.