us business spending picking up
Monday 21 July 2025
Last Updated : GMT 09:40:38
Themuslimchronicle, themuslimchronicle

US business spending picking up

Themuslimchronicle, themuslimchronicle

Themuslimchronicle, themuslimchronicleUS business spending picking up

US automobile industry
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-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, dipped 0.1 percent last month after rising 0.1 percent in January. That suggested a slowdown in business spending in the second quarter.
Shipments of these so-called core capital goods jumped 1 percent after declining 0.3 percent in January. Core capital goods shipments are used to calculate equipment spending in the government’s gross domestic product (GDP) 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 percent last month.
Orders for machinery inched up 0.1 percent while shipments increased 0.9 percent. Orders for electrical equipment, appliances and components advanced 2.2 percent, the biggest increase in seven months, and shipments rose 1.5 percent.
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 percent 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.
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 percent annualized 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 1 percent in the first quarter after expanding at a 1.9 percent pace in the final three months of 2016.
Last month, a 4.3 percent jump in demand for transportation equipment offset the dip in core capital goods bookings and hoisted overall orders for durable goods. Durable goods’ orders rose 2.3 percent in January.
Civilian aircraft orders soared 47.6 percent in February, driven by an increase in plane orders at Boeing.
Orders for motor vehicles and parts fell 0.8 percent in February, while orders for defense aircraft declined 12.8 percent. 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 percent last month after rising 0.5 percent in January. Inventories of overall durable goods rose 0.2 percent last month.

Source: Arab News

themuslimchronicle
themuslimchronicle

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 us business spending picking up

 



Themuslimchronicle, themuslimchronicle

GMT 15:27 2011 Sunday ,24 July

Monaco\'s Charlene \'very happy\'

GMT 12:40 2012 Monday ,25 June

Gaddafi\'s female guard arrested

GMT 21:34 2011 Thursday ,29 December

Don 2

GMT 20:18 2011 Wednesday ,09 February

Siraj Sanad Debuts politically correct fashion

GMT 18:40 2017 Wednesday ,22 March

Unstable weather on Thursday

GMT 05:23 2012 Sunday ,28 October

… And in Lebanon a Truce is Forbidden!

GMT 00:48 2012 Tuesday ,26 June

Animals tough it out on Kilimanjaro

GMT 09:40 2017 Tuesday ,03 January

Russia flags war games with US ally Philippines

GMT 11:08 2016 Tuesday ,20 December

Lloyds bank buys UK credit card firm MBNA for £1.9bn

GMT 23:10 2017 Saturday ,26 August

Ministry’s new regulations for part-time Omani job

GMT 11:45 2017 Saturday ,16 September

The Gulf’s stance on the Kurdish referendum

GMT 21:13 2015 Thursday ,26 March

Qatar's PM congratulates president of Bangladesh

GMT 20:29 2017 Monday ,20 February

Everton have adapted to Koeman's demands

GMT 11:24 2017 Wednesday ,11 January

Swiss jailed in Singapore over Malaysia's 1MDB saga

GMT 15:57 2012 Thursday ,23 February

British firm launches cheap tablet

GMT 14:47 2016 Monday ,01 August

December 21 - January 18

GMT 11:50 2017 Friday ,08 September

Ragheb does not intend to participate in drama

GMT 09:07 2017 Saturday ,29 July

Bosy says Mistake to present 'Lovers’ Palace'

GMT 01:53 2011 Tuesday ,01 November

Red Interior Design Ideas
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
 
 Themuslimchronicle Facebook,themuslimchronicle facebook  Themuslimchronicle Twitter,themuslimchronicle twitter Themuslimchronicle Rss,themuslimchronicle rss  Themuslimchronicle Youtube,themuslimchronicle youtube  Themuslimchronicle Youtube,themuslimchronicle youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

muslimchronicle muslimchronicle muslimchronicle muslimchronicle
themuslimchronicle themuslimchronicle themuslimchronicle
themuslimchronicle
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
themuslimchronicle, themuslimchronicle, themuslimchronicle