On Wednesday, Commerce Department data for new orders of US-borne core capital goods had sketched out a comely specimen for a pandemic-ravaged US economy as the volume of new orders for key US-made capital goods’ orders rose for a seventh consecutive month in November, pointing towards an encouraging uptick in business investments which in effect could allay the fiscal concerns meaded out of an ominous consumer spending data.
Besides, according to US Commerce Department report revealed earlier in the day, new orders for non-defence capital goods but aircrafts, a closely monitored indicator for future business spending, soared 0.4 per cent in November.
Nonetheless, a November gain in the so-called US core capital goods’ orders followed a 1.6 per cent climb in October, while on an annualized basis, new orders for US-borne core capital goods rose 0.8 per cent compared to the same time a year earlier.
US orders for core capital goods rise as pandemic shifts demands away from tourism
In the latest flashpoint of a swing in demands away from the travel and leisure activities, a riant rise in US orders for core capital goods last month was almost entirely boosted by a swathe of goods ranging from electrical equipment to home appliances to base metals and machineries, while the shipments of core capital goods gained 0.4 per cent last month that followed a giant upsurge of 2.6 per cent in October.
Aside from that, Wednesday’s solacing fiscal data came forth a day after the US National Association of Realtor was quoted saying that sales of existing homes in the United States fell in November amid a sweeping increase in rates, mostly due to a steep shortage in demands, while Consumer Sentiment had also slandered earlier in December ahead of a busy holiday season.
In actuality, an upbeat US housing market had long been offsetting the impacts of a pandemic-driven decline in consumer spending, however, a modest rise in orders for US-made core capital goods last month would more likely to provide a muffled US economy with a much-required breathing space, suggested analysts.
Orders for durable goods advanced 0.9 per cent in November after progressing as much as 1.8 per cent in October, while orders for autos and motor vehicles’ parts had surged 2.4 per cent last month.