US RECOVERY IS IMPROVING, MIDF RESEARCH SAYS

KUALA LUMPUR, Nov 19 (Bernama)-- The real gross domestic product (GDP)
growth of the United States is expected to be better for the fourth quarter
2010, driven by positive wealth effects from improving stocks, near record-low
interest rates as well as an improving job market that helps repair tattered
finances of households.

The latest set of data denotes that the US Federal Reserve's efforts to spur
growth should yield more positive results in coming months, said MIDF Research
in a note today.

Nevertheless, uncertainties will still prevail, given the deflation risk
still lingering and the rise in new foreclosures against all types of
mortgages in the third quarter of 2010 to 1.34 per cent from 1.11 per cent in
the second quarter this year.

The US index of leading indicators rose for the fourth consecutive month,
while manufacturing surged in the Philadelphia area and jobless claims climbed
less than forecast, all signaling that the US economy is accelerating, said the
research house.

"We now believe the soft patch is behind the US as there appears to be a
little more momentum," MIDF Research said.
-- BERNAMA