US business investment stabilizing, economy slowing

  • 📰 ChannelNewsAsia
  • ⏱ Reading Time:
  • 67 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 30%
  • Publisher: 66%

Business News News

Business Business Latest News,Business Business Headlines

New orders for key U.S.-made capital goods surged in June, but the jump will probably not change expectations that business investment contracted ...

WASHINGTON: New orders for key U.S.-made capital goods surged in June, suggesting some improvement in business investment, but economic growth is still expected to have slowed sharply in the second quarter amid weaker exports and a smaller inventory build.

Orders for these so-called core capital goods in June increased across the board, with demand for machinery rising by the most in nearly 1-1/2 years. Economists polled by Reuters had forecast core capital goods orders would gain 0.2per cent in June. The government will publish its snapshot of second-quarter GDP on Friday. According to a Reuters survey of economists, GDP likely increased at a 1.8per cent annualized rate in the April-June quarter, moderating from the first quarter's brisk 3.1per cent pace.

June's surge in core capital goods orders suggests a pickup in business spending on equipment, but economists cautioned that the strength could be short-lived given an inventory glut in the motor vehicles industry and design problems at Boeing that are helping to undercut the manufacturing sector. The single-aisle plane was grounded worldwide in March after two fatal crashes in Ethiopia and Indonesia. Production of the aircraft has been reduced and deliveries suspended.

In a second report on Thursday, the Commerce Department said the goods trade deficit fell 1.2per cent to US$74.2 billion in June, with imports dropping US$4.6 billion to US$210.5 billion. Imports fell broadly last month, potentially hinting at some cooling in domestic demand after gaining speed in recent months.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 6. in BUSÄ°NESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

US justice department to open new antitrust review of big tech companies - WSJThe U.S. Justice Department is opening a broad antitrust review into whether dominant technology firms are unlawfully stifling competition, the ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »