U.S. Core Capital Goods Orders Decline for First Time in a Year
Source: Bloomberg
Bloomberg
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Economics
U.S. Core Capital Goods Orders Decline for First Time in a Year
-- Equipment demand eased 0.3% in February after a 1.3% jump
-- Total durables bookings fell 2.2% on fewer aircraft orders
By Reade Pickert
March 24, 2022, 8:33 AM EDT Updated on March 24, 2022, 8:52 AM EDT
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Orders placed with U.S. factories for business equipment unexpectedly declined in February for the first time in a year, likely representing a pause in capital spending after a sharp rise a month earlier.
The value of core capital goods orders, a proxy for investment in equipment that excludes aircraft and military hardware, decreased 0.3% after an upwardly revised 1.3% gain a month earlier, Commerce Department figures showed Thursday. The median estimate in a Bloomberg survey of economists called for a 0.5% advance. ... Bookings for all durables -- or items meant to last at least three years -- fell 2.2%, the first decline in five months, reflecting a drop in orders for commercial aircraft. Excluding transportation, durable goods orders dropped 0.6%.
Even with the surprise softness in orders last month, sustained monthly declines would be needed to signal a shift in what has otherwise been a healthy capital spending environment. One risk is that Federal Reserve interest-rate hikes may start to diminish corporate investment appetites.
Separate government data on Thursday showed applications for unemployment benefits dropped by 28,000 to 187,000 last week, the lowest since 1969 and underscoring persistent tightness in the job market.
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Read more: https://www.bloomberg.com/news/articles/2022-03-24/u-s-capital-goods-orders-decline-for-first-time-in-a-year
From the source:
https://www.census.gov/economic-indicators/#durable_goods
https://www.census.gov/manufacturing/m3/adv/pdf/durgd.pdf