In today’s report, the CDC stated that U.S. orders for key manufactured capital goods fell unexpectedly in October, indicating a slowdown in business spending.
Non-defense capital goods orders, excluding aircraft, dropped 0.2% after a revised 0.3% increase in September.
Business investment in equipment has remained steady despite the Federal Reserve’s tighter monetary policy to fight inflation. Following interest rate cuts in September, non-defense capital goods orders rose 1.4% after a 3.5% decline the previous month, while shipments fell by 1.9% after a 3.8% drop.
Business investment in equipment grew significantly over the past two quarters, boosting economic performance. In October, orders for durable goods increased by 0.2%, recovering from a 0.4% decline in September, driven by a 0.5% rise in transportation equipment orders.
Motor vehicle and parts orders fell by 0.4%, while commercial aircraft and parts orders surged by 8.3%. Boeing reported 63 aircraft orders in October, down from 65 in September.
Commercial aircraft shipments dropped by 11.8% due to the seven-week strike at Boeing’s factories, which affected production of its top-selling models, including the 767 and 777.
By CEO NA Editorial Staff
