American core capital products orders suddenly dive in August

American core capital products orders suddenly dive in August

In August, fresh orders for major American capital products went down following four straight months of firm leaps, while shipments added. However, it won’t probably affect expectations of firm surge in business spending on equipment for the third quarter.

On Thursday, the Commerce Department told that orders for non-defense capital products without aircraft, monitored for business spending plans, decreased by nearly 0.5% in August, suppressed by a dive in demand for electronic products and computers.

There was also a slump in car orders. July’s data was updated a bit down to demonstrate the core capital goods orders adding almost 1.5% versus the previously posted 1.6% leap.

Market experts interviewed by Reuters had predicted core capital goods orders ascending by 0.4% in August. What’s more year-on-year, core capital products orders ascended by up to 7.4%.

Secondly, shipments of core capital products managed to inch up by up to 0.1% in August after an upwardly updated 1.1% leap gain in July. By the way, core capital goods shipments are employed to calculate equipment spending within the government's GDP measurement. Previously, they were posted to have jumped by up to 1% in July.

With business confidence at multi-year maximums, in part underpinned by a $1.5 trillion tax trim package, the sudden sag in core capital products orders in August should be regarded as temporary. However, there’re fears that an escalating trade conflict between China and America could impact confidence and also affect both business and consumer spending.

In addition to this, the US government imposed levies on $200 billion worth of China’s products on Monday , with the opponent immediately fighting back with levies on $60 billion worth of the counterpart’s products. By the way, both leading economies had already put levies on $50 billion worth of each other's exports.

Similar

British budget gap inches down

In September, Britain's authorities faced a smaller budget deficit than anticipated, although the improvement won’t probably help a lot to have minister Philip Hammond financed as he’s working on his annual budget…

Latest news

Greenback edges down

On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…

Deposit with your local payment systems

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera