Optimism over economic prospects increased across the Americas regions during the first quarter of the year, as economic data showed sustained improvement and global risks eased somewhat. Despite costlier fuel, consumer spending climbed in most countries across the region, especially in the U.S. The European fiscal crisis now appears less worrisome when compared to last year, while the slowdown in Asia has turned out to be milder than expected earlier. Commodity prices have recovered after the correction during the second half of last year, on an improved outlook in global demand.

2. This is Epsilon Capital Management’s 3 Part Series on the
Americas Economies for the first quarter of 2012.

3. PRLog (Press Release) - Jun 04, 2012 -
This is Epsilon Capital Management’s 3 Part Series on the
Americas Economies for the first quarter of 2012.

4. In the first part of our report we will look across the region as
a whole and more specifically at the United States and
Canada. These are undoubtedly the 2 key economies in
this region for very different reasons.

5. This is Epsilon Capital Management’s 3 Part Series on the
Americas Economies for the first quarter of 2012.

6. Economic Review Americas First Quarter 2012
Optimism over economic prospects increased across the
Americas regions during the first quarter of the year, as
economic data showed sustained improvement and
global risks eased somewhat

7. Despite costlier fuel, consumer spending climbed in most
countries across the region, especially in the U.S. The
European fiscal crisis now appears less worrisome when
compared to last year, while the slowdown in Asia has
turned out to be milder than expected earlier. Commodity
prices have recovered after the correction during the
second half of last year, on an improved outlook in global
demand.

8. Better U.S. economic prospects continue to drive the
outlook for the rest of the Americas region and much of the
rest of the world. U.S. consumer demand outlook was
boosted by the better than expected labor market gains
during the first two months of the year, though the
unemployment rate remains relatively high. Economic
growth forecasts for Canada have also been revised
higher as the country’s exports are likely to be supported
by increased global demand.

9. Among the Latin American economies, Brazil faced the
steepest decline in GDP growth last year as its economy
almost came to a standstill during the second half of the
year. However, the fiscal and monetary stimulus measures
introduced in recent months are expected to support a
moderate recovery this year as well as in 2013.

10. Mexico and Colombia should benefit from increased U.S.
demand while increased global demand for metals and
other resources will likely help Chile and Peru. Argentina is
expected to see a substantial decline in growth rate this
year as concerns over its government policies could deter
investment inflows.

11. This is Epsilon Capital Management’s 3 Part Series on the
Americas Economies for the first quarter of 2012.

12. United States: Growth forecasts lifted as labor market
gains support consumer sentiment
The U.S. economic outlook continued to improve during
the first quarter as the positive trends from the labor market
helped sustain consumer sentiment. Though job additions
for the month of March were below expectations, gains
during the first two months of the year were encouraging
and the unemployment rate has declined moderately.

13. Manufacturing and services activity expanded during the
quarter while durable goods orders rebounded in February
after the previous month’s decline. Most forecasters are
now more optimistic about U.S. economic growth, led by
the IMF that has lifted its GDP growth forecast to 2.1% this
year and 2.4% for 2013.

14. Trade data for recent months show mixed trends as exports
remained steady while imports fluctuated. Import growth
was strong in January, reflecting the healthy domestic
consumer demand, but declined unexpectedly in February
on lower imports of manufactured goods from China and
fuel. As exports increased marginally to a record high, the
trade deficit narrowed during the month.