US factory orders barely rise in January, shipments sour

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US factory orders barely rise in January, shipments sour

In January, new orders for US made goods rose less-than-anticipated and shipments had fallen further for fourth straight month in a row, proffering further evidence of a steep contraction in the manufacturing activity. On Tuesday, the 19th of March 2019, the US Commerce Department had said that the Factory goods order had inched up by 0.1 percent in January, largely smothered by a decrease in the computer and electronic products orders.

Besides, the factory goods orders had also raised by same margin on December, triggering questions whether a sharp slowdown would be taking effect much sooner-much-expected. Adding further strains into the slowing US economy, demands for fabricated and primary metals had also dwindled in January, while shipments of factory goods dropped by 0.4 percent after falling 0.2 percent in December, remarking the longest falling streak for factory goods’ shipments since June 2015.

Factory orders would likely to remain softer, as orders had only risen by 0.1 percent in January after falling for three consecutive months. The release of the report was due on mid-February, however had been delayed by a record 35-day long partial shutdown of the Federal Government over a political gridlock on Mexico-border wall funding issue.

The financial markets were little changed after the release of the report, although the American dollar appeared to start showing resistance, as it was 0.05 percent up to 96.46 after falling for most part of the last couple of weeks following Tuesday’s (March 19th) data.