Orders for goods in U.S. increased
2022.12.23 12:31
Orders for goods in U.S. increased
Budrigannews.com – In November, shipments of U.S.-made capital goods decreased while new orders increased moderately. This suggests that business spending on equipment will slow this quarter as demand for goods is slowed by higher borrowing costs.
The Commerce Department announced on Friday that orders for capital goods other than aircraft, which are a closely watched indicator of business spending plans, increased by 0.2 percent in the previous month. In October, these so-called core capital goods orders went up by 0.3 percent.
Core orders for capital goods were expected to remain the same, according to Reuters polled economists. In November, core capital goods saw an annual increase of 8.8%.
Inflation is not taken into account in the data. The moderation in core capital goods orders is likely due to slowed price rises, a strong dollar, and a shift in spending from goods to services. Manufacturing, which makes up 11.3% of the economy, is suffering as a result.
There was an increase in orders for electrical appliances, components, machinery, computers, and electronic goods. But orders for primary metals fell.
After rising by 1.4% in October, core capital goods deliveries decreased by 0.1 percent. In the measurement of the gross domestic product, equipment spending is calculated using shipments of core capital goods.
Equipment spending by businesses was a factor in the 3.2% annualized growth rate of the economy in the third quarter. The Federal Reserve raised its policy rate last week by 50 basis points to 4.25 percent to 4.50 percent—the highest level since late 2007. Officials at the U.S. central bank anticipate that the rate will rise to anywhere from 5.05 percent to 5.25 percent next year, which could be a level that holds for a while.
After increasing by 0.7% in October, orders for toasters to aircraft that are designed to last three years or more decreased by 2.1% in November.
More Signs of slowdown in Canada’s economy
After an increase of 1.9% in October, they experienced a 6.3% decline in orders for transportation equipment. Orders for motor vehicles decreased by 1%. The volatile category of civilian aircraft saw a 36.4% decline in orders.
