Demand for U.S. manufactured capital goods fell in September. The Commerce Department said on Thursday that non-defense capital goods orders also fell during this month at 1.2 percent. However, core capital good orders increased by 1.2 percent since August and shipments rose 0.3 percent. Though spending on equipment liked remained weak in the third quarter. Heavy machinery maker Caterpillar this week reported a 49 percent drop in third-quarter profit from a year ago and lowered it full-year revenue outlook for the second time this year. There were declines in orders for primary metals and fabricated metal products. Orders for machinery and electrical equipment, appliances and components rose last month.
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What are the primary factors for such a shift? And where are funds being diluted to?
ReplyDeleteGiven that orders of non-defense capital goods are a part of the Index of Leading Economic Indicators, that seems concerning. I wonder if there were similar trends in other inputs of the index, if so that could really be troubling in six to nine months.
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