US Factory Orders Decline in November Amid Slowing Business Spending
In November, US factory orders fell 0.4%, indicating a slowdown in business spending on equipment as the economy faces challenges
Washington, US, Factory Orders, Business Spending, Economy
Washington: So, it looks like factory orders in the U.S. took a bit of a hit in November. They dropped by 0.4%, which is a change from the 0.5% gain we saw in October. The Commerce Department shared this info, and it’s got folks talking.
Economists were actually expecting a smaller drop, around 0.3%. But hey, it’s a mixed bag because factory orders did see a slight year-on-year increase of 0.1% in November.
Manufacturing is a big deal, making up about 10.3% of the economy. But it’s been struggling lately, mainly due to the Federal Reserve tightening up on monetary policy to tackle inflation over the past couple of years.
On a brighter note, there’s hope for a recovery this year. The Fed might cut interest rates, and a recent survey showed a rise in the Purchasing Managers Index, which is a good sign for factory production.
Plus, there’s talk about President-elect Donald Trump’s plans to cut taxes, which could help boost things. But, some of his other promises, like higher tariffs on imports, might make raw materials pricier.
Looking at the numbers, orders for non-defense capital goods, which are a good indicator of business spending, went up by 0.4% in November. But that was a bit lower than the earlier estimate of 0.7%.
Shipments of core capital goods also saw a slight increase of 0.3%, but that’s down from the 0.5% we thought it would be. Non-defense capital goods orders did slip by 0.9%, which is a bit concerning.
All in all, it seems like business investment in equipment might be slowing down after a couple of strong quarters. It’s definitely something to keep an eye on.
[rule_2]