Orders For Durable Goods Fell By 1% In February

Due to a decline in demand for new cars and passenger flights, orders for American-made goods declined 1% in February. Yet business investment rose for the second month in a row in a sign the industrial side of the economy is still growing.

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Trade Algo's survey of economists had predicted a 0.3% decline in orders. Products that are designed to endure at least three years include computers, appliances, and automobiles.

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In an expanding economy, orders increase, and in a contracting one, they decline. They are still increasing, albeit more slowly than they were last year.

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The smallest yearly increase in orders since 2020 is 2.3% over the past 12 months.

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Due to a decline in demand for new cars and passenger flights, orders for American-made goods declined 1% in February. However corporate investment climbed for the second consecutive month in an indication the industrial sector of the economy is still thriving.

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Trade Algo's survey of economists had predicted a 0.3% decline in orders. Products that are designed to endure at least three years include computers, appliances, and automobiles.

‍

In an expanding economy, orders increase, and in a contracting one, they decline. They are still increasing, albeit more slowly than they were last year.

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The smallest yearly increase in orders since 2020 is 2.3% over the past 12 months.

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Those orders include military budget and the automotive and aerospace. Despite the fact that they have increased by 4.3% in the last year, this is their smallest growth since 2020.

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The manufacturing component of the economy has stagnated since last year because of sharp prices and higher interest rates. Higher cost of borrowing curtail requirement for costly manufactured products and stifle growth.

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Although manufacturers are still expanding, additional downturn would be unfavorable. The economy's cutting edge is heavy industry.

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If banks reduce lending to businesses, the recent upheaval in the banking industry following Silicon Valley Bank's failure could also increase the burden.

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Going ahead, Santander Capital Markets' senior economist Stephen Stanley stated that "business investment is undoubtedly a weakness for the economy in the case of a major tightening in credit conditions." “Thus, it will be vital to observe these data going forward.”