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U.s. Durable Goods Orders Up 1.7% In August

Biphoo

28 Sep 2017

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U.S. durable goods orders up 1.7% in August

Orders for long-lasting manufactured goods rose a modest 1.7% in August, reflecting a rebound in the volatile aircraft sector. A gauge of business investment was up for a second month, providing hope that a revival in manufacturing is gaining strength.

Last month's advance in orders for durable goods followed a 6.8% plunge in July, the Labor Department reported Wednesday. Both months were heavily influenced by swings in orders for commercial aircraft, which surged 44.8% in August after having plunged 71.1% in July.

A closely watched category that serves as a proxy for business investment posted a 0.9% gain in August after a 1.1% increase in July. Economists believe that U.S. factory output should continue rising in coming months, reflecting a rebound in the global economy.

Manufacturing has been improving since the middle of 2016, following a two-year slump caused by cutbacks in the energy industry and a strong dollar that made U.S. goods costlier overseas. Prospects are brighter now with the dollar weakening in value this year, which makes U.S. exports more competitive on overseas markets, and a rebound in energy drilling.

The overall economy, as measured by the gross domestic product, expanded at a solid 3% rate in the April-June quarter after a tepid 1.2% gain in the first three months of the year. Analysts believe activity in the current July-September quarter will likely slow a bit, in part because of the devastation caused by hurricanes Harvey and Irma.

For August, orders excluding transportation were up 0.2% after a stronger 0.8% rise in July.

Demand for machinery rose 0.3% while orders for computers and related products fell 2.3%. Orders for autos and auto parts rose 1.5% after a 2.1% drop in July.

Source:-https://www.usatoday.com/story/money/2017/09/27/u-s-durable-goods-orders-up-1-7-august/707337001/

Biphoo

28 Sep 2017

512 Views