Our main trading partners are recovering. Good growth very likely in 2013 for Singapore. I'm expecting properties to be either flat or grow slightly this year.

China recovering from 'soft landing'

PUBLISHED JANUARY 23, 2013

DAVOS - The head of China's National Economic Research Institute says his country's economy is now recovering from its "soft landing" and that the big challenge in 2013 will be to prevent it overheating.

Fan Gang told a session on China's growth prospects at the World Economic Forum on Wednesday that the world's second-largest economy should grow faster in 2013 than it did last year.

China posted growth of 7.8 per cent last year, its weakest performance since the 1990s.

Fan said that in 2013 China could grow between 8 per cent to 8.5 per cent. -- AP

http://www.businesstimes.com.sg/brea...nding-20130123


IMF says "cautious optimism" may be justified on global economy

PUBLISHED JANUARY 23, 2013

WASHINGTON - The biggest risks facing the global economy last year have been dodged and "cautious optimism" on the outlook may be warranted, the IMF's chief economist said on Wednesday.

"Optimism is in the air, particularly in financial markets, and some cautious optimism may indeed be justified," International Monetary Fund chief economist Olivier Blanchard said.

"Comparing to where we were at the same time last year, acute risks have decreased," he told a news conference, referring to the "fiscal cliff" in the United States and the threat posed by Europe's debt crisis.

"We may have avoided the cliffs, but we still face high mountains," MR Blanchard said. -- REUTERS

http://www.businesstimes.com.sg/brea...onomy-20130123


US manufacturers say demand up after cliff standoff

PUBLISHED JANUARY 23, 2013

BOSTON - Top US manufacturers sounded a confident note about their expectations for 2013 on Wednesday as the worries of the year-end "fiscal cliff" standoff in Washington faded into memory.

Textron Inc laid out an earnings forecast that would represent growth of about 12 per cent, while larger peer United Technologies Corp reiterated a projection that its profit would rise about 13 per cent.

Executives at each company said that, after seeing a year-end pause in ordering as customers worried about a budget standoff that could have triggered large spending cuts and higher taxes in the United States, demand is recovering.

"What we see in the economy in the US is that the rebound in the housing market is really having a pull-through effect on the rest of the economy," said Greg Hayes, chief financial officer of United Tech, in an interview.

"Commercial construction is also coming back. We saw particular strength in North America and Asia, not as much of a story in Europe, as you can imagine."

The Hartford, Connecticut-based company is the world's largest maker of elevators and air conditioners and also produces Pratt & Whitney jet engines and Sikorsky helicopters.

It also noted that airlines' orders for spare parts for jet engine had risen in the quarter, reflecting higher rates of travel.

Meanwhile, Textron said it expects sales of its Cessna corporate jets to pick up this year, after a year-end drop that the Providence, Rhode Island-based company blamed on "fiscal cliff" worries.

"We're planning on deliveries to be higher than in 2012," said Chief Executive Scott Donnelly, on a conference call with analysts.

"We'll see a degree of uncertainty in the jet market as Washington works through its fiscal challenges, but we believe demand will solidify as those uncertainties are reduced."

While the White House and Congress averted the crisis that could have been triggered by allowing the US economy to go over the "fiscal cliff", an event that economists said would have sent the nation back into recession, budget battles continue.

On Wednesday, US lawmakers are expected to vote to extend by four months the government's ability to borrow money, effectively suspending rules that allow the nation to borrow no more than US$16.4 trillion.

United Tech stood by its forecast, first issued last month, that called for 2013 earnings to rise by about 13 per cent to a range of $5.85 to $6.15 per share, with sales up about 12 per cent to a range of US$64 billion to US$65 billion.

Textron issued a 2013 forecast that called for profit to rise by about 12 per cent to a range of $2.10 to $2.30 per share, with revenue up about 6 per cent to US$12.9 billion.

The results came a few days after General Electric Co , the largest US conglomerate, said that it ended 2012 with a record-high order backlog and sounded a confident note on 2013, sending its shares higher on Friday.

United Tech and Textron shares were little changed in premarket trading.

Investors will get more news on the sector later this week, when 3M Co and Honeywell International Inc are due to report results. -- REUTERS

http://www.businesstimes.com.sg/brea...ndoff-20130123