On Tuesday, data revealed from the US Commerce Department had orchaestrated an ambivalent landscape of a US economy which had been gradually recovering from the pandemic-led fiscal slump, as new orders for key US-made capital goods surged to a six-year peak in September, eventually wrapping up a quarter of record growth that seemed to be riding over a $3 trillion fiscal stimulus bill passed in the US Congress in April this year, though consumer confidence fell sharply.
On top of that, Tuesday’s Commerce Department data had also revealed a modest increase in the shipment of goods last month, bolstering analysts’ view of a declining pace of US economic recovery over the fourth quarter of the year, while the downbeat outlook was reinforced further following reveal of drop in consumer confidence less than seven days ahead of a fiercely contested US Presidential election.
Orders for US capital goods jump to six-year peak in September
In point of fact, despite a raft of fairly upbeat data, concerns were mounting that a nascent recovery of US economy would unlikely to sustain over the coming months, as White House and Democratic Congressional lawmakers had failed to reach an accord over a second round of trillion-dollar pandemic stimulus bill following weeks of negotiations, while a likely post-election chaos had been ratcheting up consumers’ worries.
Nonetheless, according to US Commerce Department data that was revealed earlier in the day, orders for non-defence goods, a closely watched indicator for future business investment plans, rose 1 per cent last month to reach the highest level since the September of 2014, while the so-called core capital goods’ orders surged by a revised 2.1 per cent in August.
In a separate statement, the Washington-based Conference Board was quoted saying that its index for US Consumer Confidence fell to 100.9 in October from a reading of 101.3 registered in September, while US Consumer Confidence has currently been at the levels witnessed during the October of 2016.
Meanwhile, referring to a potential lack of fiscal backing from the US Government which in turn had been tottering consumer confidence ahead of a dubious US Presidential election, a lead US economist at Oxford Economics in New York, Oren Klachkin said following release of the data, “The recovery is now entering a more challenging phase, in which it will face the pandemic crisis without meaningful fiscal support”.