When will the US go bankrupt? Will it start the market crash unseen before? We have plenty to share with you, so let’s get started.
Production orders in America dive by 0.8% in April
In April, new orders for goods produced in the United States headed south more than expected that was provoked by a dive in demand for transportation equipment as well as spare parts, although the key trend kept determining a firm impetus in the manufacturing sector.
Orders for factory stuff slumped by 0.8%, as the Ministry of Commerce informed on Monday. As a matter of fact, the data for March was updated to show that orders headed north by 1.7% instead of the previously achieved surge of about 1.6%.
Market experts forecast that in April production orders would go down by 0.5%. Compared to 2017 orders rallied by 8.3% in April.
The monthly sag in production orders will probably be temporary in the face of sturdy production conditions in May. A survey conducted the previous week disclosed that moods among producers were much better in May due to a leap in new orders.
Orders for transportation equipment went down by 6% due to a 28.9% sag in the wavering category of orders for civilian aircraft. Transportation orders managed to ascend by 6.9% in March. Orders for vehicles went up by 1.0% in April.
Orders for equipment went down by 0.7% having sagged by 3.1% in March. It influenced the reduction of orders for mining, gas and oil equipment by 11.6%. As for orders for industrial machinery, they inched down by 10%.
There was a dive in the number of orders for PCs. However, orders for household appliances, electrical equipment as well as components dipped by approximately 1.8%. Orders for factory metal products along with primary metals have slumped too.
Shipments of key capital goods employed to calculate the cost of business equipment in the GDP report rallied about 0.9% in April versus a 0.8% jump the previous month.
The US Consumer sentiment will shake the market today. We are back with more news for you to enjoy!
Today, the US Inflation release at 15:30 GMT+3 will determine the further destiny of the major pairs and gold. The event is highly impactful, as the Federal Reserve will make decisions regarding further rate hikes based on it. Also, we brought you some news about XAUUSD and GBPUSD. Stay tuned!
The situation on the labor market still looks optimistic. Today we expect the Unemployment rate data. 3.5% is expected.
The first day of June should’ve brought us the US default. Unsurprisingly, the US House passes the debt ceiling bill at the latest possible moment.
About 24% of global central banks intend to increase gold reserves in 2023. Rising inflation, geopolitical turmoil, and worries about interest rates are reasons to increase gold reserves.