Orders placed with US factories for durable goods dropped in December for the first time in three straight months, signaling a hold in capital investment at the close of Q4.
Source: US Department of Commerce
DXY up +0.58%, EUR USD down -0.71%
Orders for all durable goods, fell by 0.9% from November, signaling a drop in orders for commercial aircraft and communications equipment. Durable orders for November were revised upwards to a 3.2% increase.
The value of core capital goods orders, a measure for business investment in equipment, which excludes aircraft and military components, remained pretty the same.
The data signals that the limited availability of materials and components due to supply chain challenges and labor shortages hampered business investment growth at the end of Q4.
Higher borrowing costs as the Federal Reserve tightens monetary policy increases risks for reduced capital spending plans over the longer term.
Comments