financetom
Economy
financetom
/
Economy
/
US core capital goods orders unexpectedly drop in February
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US core capital goods orders unexpectedly drop in February
Mar 26, 2025 6:00 AM

WASHINGTON (Reuters) - New orders for key U.S.-manufactured capital goods unexpectedly fell in February and could remain sluggish as economic uncertainty rises because of tariffs, discouraging businesses from boosting spending on equipment.

Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, dropped 0.3% last month after an upwardly revised 0.9% surge in January, the Commerce Department's Census Bureau said on Wednesday.

Economists polled by Reuters had forecast these so-called core capital goods orders gaining 0.2% after a previously reported 0.8% jump in January. Businesses eager to avoid higher prices because of tariffs likely front-loaded orders in January.

President Donald Trump has announced a raft of levies on imports. Some of the duties have been delayed until April. Economists have warned that the nature in which the tariffs are being handled was not supportive of economic activity.

Business sentiment and consumer confidence have deteriorated in recent months.

Trump on Monday indicated that not all of his threatened duties would be imposed on April 2 and some countries may get breaks, but at the same time said tariffs on imported automobiles were coming soon.

Shipments of core capital goods rebounded 0.9% after falling 0.2% in January. Non-defense capital goods orders declined 1.5% after accelerating 12.8% in January. Shipments of these goods rose 0.5% after vaulting 3.2% in the prior month.

Core and non-defense capital goods shipments go into the calculation of the business spending on equipment component in the gross domestic product report.

Business investment in equipment contracted in the fourth quarter, partially offsetting robust consumer spending.

Growth estimates for the January-March quarter are mostly below a 1.5% annualized rate and the odds of a contraction are high. The economy grew at a 2.3% pace in the fourth quarter.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
NY Fed President Remains Confident In 'Well Positioned' Economy For Soft Landing Amid Rate Cut Adjustments
NY Fed President Remains Confident In 'Well Positioned' Economy For Soft Landing Amid Rate Cut Adjustments
Oct 10, 2024
John Williams, President of the New York Federal Reserve, expressed confidence in the Federal Reserve’s strategy to achieve a soft landing for the U.S. economy. He emphasized the central bank’s current monetary policy as effective in sustaining economic growth while curbing inflation. What Happened: Williams highlighted the importance of the “very good” jobs report for September, which underscored the economy’s...
US jobs market cooling but still resilient, Fed's Kugler says
US jobs market cooling but still resilient, Fed's Kugler says
Oct 10, 2024
FRANKFURT (Reuters) - The U.S. jobs market has started to cool but remains resilient and the Federal Reserve is keen to avoid a drastic weakening of the labor market, Fed Governor Adriana Kugler said in Frankfurt on Tuesday. The lower unemployment that we saw in Friday's jobs report is very welcome, Kugler told a European Central Bank Conference. We don't...
Fed's Adriana Kugler 'Will Support' For More Rate Cuts If Inflation Declines
Fed's Adriana Kugler 'Will Support' For More Rate Cuts If Inflation Declines
Oct 10, 2024
In a recent statement, Federal Reserve Governor Adriana Kugler expressed her support for additional interest rate cuts, contingent on continued decreases in inflation. This announcement was made during her speech at the European Central Bank. What Happened: Kugler emphasized the importance of balancing inflation control with employment growth, aligning with the Federal Open Market Committee’s dual mandate of price stability...
US trade deficit narrows sharply in August
US trade deficit narrows sharply in August
Oct 10, 2024
(Fixes word order in headline) WASHINGTON (Reuters) - The U.S. trade deficit narrowed sharply in August as exports increased and imports fell, suggesting that trade could be a small drag on economic growth in the third quarter. The trade gap contracted 10.8% to $70.4 billion from a revised $78.9 billion in July, the Commerce Department's Bureau of Economic Analysis said...
Copyright 2023-2025 - www.financetom.com All Rights Reserved