h digitalfootprint web 728x90

Businesses still cautious as durable goods orders fall

/wp-content/uploads/2022/11/BR_web_311x311.jpeg

Orders for durable goods unexpectedly fell in February, reflecting declines in demand for capital goods and military aircraft, Bloomberg reported.

Numbers from the U.S. Department of Commerce showed that orders for goods meant to last at least three years dropped 0.9 percent after a 3.6 percent gain the prior month that was higher than initially reported. Orders, excluding transportation equipment, fell for a second month, and demand for business equipment declined.

Companies may be tempering their purchases of new equipment until further signs emerge that the recovery is broadening and will generate faster job growth, analysts say.

“When it comes to pulling the trigger, businesses seem more cautious about the outlook,” said David Semmens, a U.S. economist at Standard Chartered Bank in New York, in an interview with Bloomberg. “Still, durable goods is a volatile series,” and other figures on manufacturing “are showing strong growth.”

Analysts said manufacturing industries, which account for 11 percent of the economy, are likely to remain at the forefront of the recovery as businesses replenish inventories.

Figures from the U.S. Department of Labor showed that first-time applications for unemployment benefits declined to 382,000, a drop of 5,000, in the week ended March 19. The number of people receiving benefits fell to the lowest level in almost three years.