Durable Goods Report Summary
Orders for key US-manufactured capital goods unexpectedly rose 0.2% in February, although January orders were revised down to show a rise of 0.3%.
This suggests that business spending on equipment may struggle to rebound in the first quarter. Core capital goods orders rose 4.3% YoY in February.
US Manufacturing Contracts for Second Consecutive Quarter
US manufacturing has contracted for two consecutive quarters as borrowing costs reduce demand for goods bought on credit.
Spending is also shifting from goods to services, while the inventory cycle slows, and the dollar’s past appreciation and sluggish global growth curtail exports.
The Federal Reserve raised its benchmark overnight interest rate by a quarter of a percentage point on Wednesday but may pause further increases, following…
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