New orders for U.S.-made capital goods increased less than expected in April, suggesting businesses could be slowing their pace of spending on equipment as they confront growing headwinds from rising interest rates and tightening financial conditions.
The mixed report from the Commerce Department on Wednesday followed on the heels of May regional factory surveys last week showing manufacturers expecting moderate growth in capital spending over the next six months. The Federal Reserve has adopted an aggressive monetary policy stance to cool demand and tame inflation, sparking a stock market sell-off and boosting U.S. Treasury yields and the dollar.
"When production inputs are more expensive, maintaining existing investment levels and replacing depreciating capital makes a business spend more dollars, even if the investment does not really expand capacity," said Will Compernolle, a senior economist at FHN Financial in New York. On Wall Street, stocks were trading higher following recent sharp losses. The dollar rose against a basket of currencies, and U.S. Treasury debt prices were mostly up.Robust business investment in equipment helped keep domestic demand strong in the first quarter even as the economy contracted at a 1.4% annualized rate, burdened by a record trade deficit. April's increase in core capital goods shipments suggested business spending would keep growing, though probably not at the 15.
A survey from the New York Fed last week showed a measure of capital expenditures by businesses in New York state fell in May to its lowest level in several months. The Philadelphia Fed's gauge of future capital expenditures dropped to its lowest reading since February 2016, which the regional bank said suggested "less widespread expectations for capital spending."
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
New home sales plunge nearly 17% in AprilThe Census Bureau reported that the median sales price of new homes hit $450,600 last month. With interest rates now upward of 5%, the rising cost of homeownership is pricing more would-be buyers out of the market.
Consulte Mais informação »
'Recession warning': Sales of new homes plunge in AprilSales of new single-family homes plummeted in April as rising mortgage interest rates and skyrocketing house prices took a toll on the market. “[It's] a clear recession warning,” said the chief economist for the National Association of Home Builders.
Consulte Mais informação »
Guide: Fleet Week New York 2022 sails into New York CityFLEET WEEK 🇺🇸 After a 2-year hiatus fleet week returns to NewYorkCity! Here's the view from Chopper 12 of the ParadeofShips coming in now. Your guide to FleetWeek -
Consulte Mais informação »
Suspect surrenders in fatal New York City subway shooting - New York Amsterdam NewsA man wanted in an apparently unprovoked fatal shooting aboard a New York City subway train surrendered to police on Tuesday, hours after authorities posted his name and photo on social media and implored the public to help find him.
Consulte Mais informação »
New York City launches new mental health pilot program 'CONNECT'CONNECT will be launched at nine clinic sites in high-need areas throughout The Bronx, Manhattan, and Brooklyn. They are currently accepting referrals.
Consulte Mais informação »