Orders for goods rose in the US after the fall
2022.11.23 09:28
Orders for goods rose in the US after the fall
Budrigannews.com – In October, despite a reduction in demand due to an increase in the interest rate, orders for industrial products manufactured in the United States, as well as product deliveries, unexpectedly increased. This means that in the fourth quarter, business equipment costs started at a high level.
On Wednesday, the Ministry of Commerce reported that last month orders for capital goods other than aircraft – important indicators of planned expenditures – increased by 0.7. These so-called requirements for basic capital goods decreased by 0.8 in September.
According to economists interviewed by Budrigannews, it is expected that demand for basic capital goods will remain at the same levels. Inflation is not taken into account in the data. Fixed capital increased in October by 9.2 in annual terms.
There is an increase in orders for electrical appliances, components, machines, computers and electronic goods. But orders for primary metals declined.
After the decline on September 1, the supply of fixed capital increased by 1%. When calculating the gross domestic product, equipment costs are calculated using the supply of the main capital product.
After a decrease in the second quarter, the costs of enterprises for technical equipment increased significantly in the third quarter. This is the most aggressive period of Fed rate hikes in the 1980s.
Production is slowing down, as the higher cost of loans reduces demand for products, despite the fact that orders and supplies of fixed capital have recovered in the last month. The sector, which accounts for 11.3 of the economy, is also threatened by excess inventory, weak demand for the global market and a strong dollar due to the tightening of US economic policy.
After an increase of 0.3% in August, orders for a toaster for an airplane designed for 3 years or more increased by 0.0 percent in October. After the increase on September 2, 5, they were able to increase orders for transport equipment by 2.1.
Car orders increased by 0.6. In September, after an increase of 23.4%, the unstable category of civil aircraft orders increased by 7.4%. Boeing announced on its website that 122 aircraft orders were received in September compared to 96 orders for September.
