New orders for key U.S.-made capital goods dropped by the most in eight months in December and shipments were weak, suggesting business investment contracted further in the fourth quarter and was a drag on economic growth.
Though tensions have eased with the signing this month of a"Phase 1" trade deal between Washington and Beijing, Boeing continues to loom over manufacturing. Boeing this month suspended production of its troubled 737 MAX jetliner, which was grounded last March following two fatal crashes. U.S. stock index futures were trading higher and the dollar rose against a basket of currencies. Prices of U.S. Treasuries fell.Business investment has contracted for two straight quarters and likely remained in the red in the fourth quarter, subtracting from GDP growth. The Atlanta Fed is forecasting GDP to rise at a 1.8per cent annualized rate in the fourth quarter. The economy grew at a 2.1per cent rate in the July-September period.
Boeing's biggest assembly-line halt in more than 20 years is expected to wreak havoc with the supply chain. The plane maker's largest supplier, Spirit AeroSystems Holdings , announced early this month that it planned to lay off more than 20per cent of the workforce at its Wichita, Kansas base.
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Source: The Straits Times - 🏆 8. / 63 Read more »