According to the data, company spending on equipment likely increased in the third quarter, allaying concerns that the economy was in a downturn. Shipments of essential capital goods increased 0.3% after increasing 0.6% in July. The second quarter had the worst decline in business equipment spending in the previous two years.
The U.S. central bank increased its benchmark interest rate by 75 basis points last week, making it the third time in a row that it has done so. This month’s data revealed that production at American companies barely increased in August.
Despite the increase in orders for core capital goods, the manufacturing sector as a whole, which represents 11.9% of the GDP, is slowing down due to the Federal Reserve’s aggressive tightening of monetary policy in an effort to combat inflation.
This month’s data revealed that production at American companies barely increased in August. Durable goods orders continued to fall last month, underscoring the slowdown. After declining by 0.1% in July, orders for durable goods, which include everything from toasters to airplanes and are designed to last three years or more, decreased by 0.2%.
A 1.1% decline in orders for transportation-related equipment is what caused them to fall. Orders for defense aircraft increased by 31.2%, offsetting a fall of 18.5% in orders for commercial aircraft. Orders for automobiles and their components increased 0.3% last month. Sturdy products