us business spending picking up but may slow in second quarter
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

US business spending picking up, but may slow in second quarter

Arab Today, arab today

Arab Today, arab today US business spending picking up, but may slow in second quarter

US stockers
Washington – Arab Today

New orders for US-made capital goods unexpectedly fell in February, but a surge in shipments amid demand for machinery and electrical equipment supported expectations for an acceleration in business investment in the first quarter.

Manufacturing is recovering from a prolonged slump, driven by the energy sector, bucking a slowdown in the broader economy. The Federal Reserve last week described business investment as appearing to have "firmed somewhat." 

"The evidence is building that manufacturing activity is on something of an upswing and that capital spending on business equipment is poised to advance for the second consecutive quarter," said John Ryding, chief economist at RDQ Economics in New York.

The Commerce Department said on Friday that non-defence capital goods orders excluding aircraft, a closely watched proxy for business spending plans, dipped 0.1 per cent last month after rising 0.1 per cent in January. That suggested a slowdown in business spending in the second quarter.

Shipments of these so-called core capital goods jumped 1.0 per cent after declining 0.3 per cent in January. Core capital goods shipments are used to calculate equipment spending in the government's gross domestic product measurement. Last month's jump reflected increases in orders at the end of 2016.

Economists polled by Reuters had forecast core capital goods orders rising 0.6 per cent last month.

Orders for machinery inched up 0.1 per cent while shipments increased 0.9 per cent. Orders for electrical equipment, appliances and components advanced 2.2 per cent, the biggest increase in seven months, and shipments rose 1.5 per cent.

US financial markets were mixed as investors awaited the outcome of a vote later on Friday on a Republican-sponsored bill to replace Democratic President Barack Obama's 2010 Affordable Care Act. The vote is seen as the first significant policy test for President Donald Trump.

Stocks on Wall Street were trading higher, while the dollar was little changed. Prices for US government bonds rose.

"What the healthcare bill does is serve as the first litmus test of the Trump/Republicans' ability to deliver on important legislative initiatives," said Steven Ricchiuto, chief US economist at Mizuho Securities in New York.

"If they fail at this then the prospects for tax reform, infrastructure and defense spending will need to be rethought."

Manufacturing recovering

A recovery in oil prices from multi-year lows is driving demand for equipment in the energy sector, helping to lift the manufacturing sector.

Manufacturing, which accounts for about 12 per cent of the US economy is also being underpinned by a burst of confidence amid promises by the Trump administration to slash taxes for businesses, boost infrastructure spending and repeal some regulations.

Details of the fiscal stimulus package, however, remain vague, resulting in a moderation in orders for equipment in the last couple of months. Economists say business spending could slow in the second quarter even as they expect an acceleration this quarter.

A separate report on Friday from data firm Markit showed its US manufacturing sector index fell in March to a five-month low.

"Business optimism has been at cycle highs since the start of the year, but has yet to translate into commensurate strength in real activity," said Sarah House, an economist at Wells Fargo Economics in Charlotte, North Carolina.

Spending on equipment is expected to pick up after a 1.9 per cent annualised growth pace in the fourth quarter. Still, that will likely be insufficient to offset the drag on GDP from slower consumer spending and a wider trade deficit.

The Atlanta Fed is forecasting the economy growing at a 1.0 per cent rate in the first quarter after expanding at a 1.9 per cent pace in the final three months of 2016.

Last month, a 4.3 per cent jump in demand for transportation equipment offset the dip in core capital goods bookings, and hoisted overall orders for durable goods, items ranging from toasters to aircraft that are meant to last three years or more, 1.7 per cent. Durable goods orders rose 2.3 per cent in January.

Civilian aircraft orders soared 47.6 per cent in February, driven by an increase in plane orders at Boeing.

Orders for motor vehicles and parts fell 0.8 per cent in February, while orders for defence aircraft declined 12.8 per cent. There were increases in orders for primary metals, but orders for fabricated metal products fell as did those for computers and electronic products.

Unfilled orders for core capital goods increased 0.2 per cent last month after rising 0.5 per cent in January. Inventories of overall durable goods rose 0.2 per cent last month.

Source :Times Of Oman

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

us business spending picking up but may slow in second quarter us business spending picking up but may slow in second quarter

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

us business spending picking up but may slow in second quarter us business spending picking up but may slow in second quarter

 



GMT 13:42 2015 Saturday ,04 April

Libyan warplane targets camp in Gharyan town

GMT 15:14 2017 Wednesday ,01 March

UN documents nearly 1,500 child soldiers in Yemen

GMT 07:24 2017 Sunday ,01 October

Mexico unlikely to find more quake survivors

GMT 16:15 2015 Wednesday ,11 November

German intelligence 'spied' on Fabius, FBI, UN bodies

GMT 01:32 2017 Saturday ,15 April

Russia's Putin earns about 157,000 USD in 2016

GMT 16:30 2017 Saturday ,15 July

Minister of planning gives priority

GMT 19:45 2017 Wednesday ,05 April

President of Senegal Meets Attorney General

GMT 05:18 2017 Thursday ,21 September

Over 80 missing after migrant boat sinks off Libya

GMT 19:22 2017 Saturday ,01 April

UN: Number of Syrian Refugees Tops 5 million

GMT 15:16 2016 Thursday ,29 September

FBI to put up database on police use of deadly force

GMT 05:06 2016 Friday ,30 September

Indian markets open flat

GMT 01:57 2017 Tuesday ,10 October

Twin suicide bombs kill 13 near Mogadishu airport

GMT 02:25 2017 Friday ,08 September

UAE celebrates National Day at Expo 2017 Astana

GMT 06:19 2017 Sunday ,08 January

Bleaching poses the gravest threat to coral reefs

GMT 12:35 2017 Monday ,18 September

Elham Shahin happy for “Day for Women”

GMT 09:46 2017 Thursday ,22 June

US existing home sales unexpectedly rise in May

GMT 02:36 2017 Tuesday ,10 January

US embassy condemns Al-Arish suicide attack

GMT 10:34 2017 Sunday ,26 November

czar faces graft probe
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday