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                      DECPG Daily
        Economics and Financial Market Commentary
                      April 13, 2012
              Allen Dennis, Eung Ju Kim, Sanket Mohapatra, Mick Riordan
  You’ll find recent issues of this Daily and lots of other current analysis and high -frequency data at our
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US consumer sentiments dips but remains near four-year high. A preliminary
release of the Thomson Reuters/University of Michigan index of US consumer
sentiment suggest that US consumer sentiment dipped slightly in April, with the Index
falling to 75.7 from 76.2 the previous month [see Chart at http://prospects or
http://www.worldbank.org/prospects]. Notwithstanding the fall, the index remains
hovering around a four –year high buoyed on by an improving labor market situation,
higher stock prices and improving credit conditions. Nonetheless, higher gas prices and
weak income growth remain a check on sentiments. US Consumer prices rose 0.3%
(m/m) in March, and annual inflation eased from 2.9% to 2.7%.

Among Emerging Markets…In East Asia and Pacific, China’s GDP growth
decelerated to 8.1% in the first quarter of 2012, its slowest pace in almost three years,
from 8.9% in the fourth quarter of 2011, as export growth weakened significantly and
construction activity slowed from the government’s efforts to curb property prices.

In Latin America and Caribbean, Brazil’s retail sales declined 0.5% in February from the
previous month, the first monthly decline in six months, signaling a slower-than-
expected recovery despite interest rate cuts to stimulate demand. However, sales were
up 9.6% on a year-on-year (y/y) basis.

In South Asia, India’s trade deficit increased 55% to $185 billion for the fiscal year
ending in March 2012, according to provisional data from the Commerce Ministry, as a
surge in imports stemming mainly from higher international crude oil and gold prices
outstripped exports that have suffered due to weak demand in Europe and the US.



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DECPG Daily is an informal briefing for Bank staff whose responsibilities require that they stay abreast of
changes in global markets. The views expressed here are those of the various authors and do not
necessarily reflect those of the World Bank Group's Executive Directors or the countries they represent.
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