On Tuesday, US Commerce Department had issued a statement saying that the new orders for US-borne goods picked up vigorously in September, suggesting the US economy might have been well en-route towards a quicker-than-anticipated recovery, though sceptics warned of a slowdown in a near-term outlook citing a steep lack in Government spending.
In point of fact, Tuesday’s Commerce Department data for US factory activity held sheer significance as a day earlier, the ISM (Institute of Supply Management) data for US manufacturing activity, accountable for roughly a tenth of the entire US economic activities, had shimmered a ray of hope for a US economy which had pared all of its pandemic-driven losses in GDPs over the third quarter of the year with a record rise of 33.1 per cent in gross outputs.
Besides, ISM said in a statement on Monday that US manufacturing activity PMI (Purchasing Managers’ Index) climbed to a nearly two-year high in October, while orders for new factory goods had jumped to a 17-year high last month, pointing towards a persistent growth momentum ahead of a likely US stimulus following the November 3 election day.
US factory orders rise as electronics & autos lead the gains
Aside from that, according to US Commerce Department’s data revealed earlier on US trading hours, new orders for US-made factory goods stepped up 1.1 per cent in September that followed a rise of 0.6 per cent in August, while ISM data for US factory goods’ orders in October had bolstered views that the US economy might just be able to gather traction despite a record uptick in pandemic cases.
Nonetheless, orders were primarily boosted up by an increase in demands for metals, electronic products alongside computers, autos and fabricated metals, though orders for machinery, electric equipment and components dropped, hinting a still-stymied business sentiment to spend large amid a fiercely contested US election underway.