In the latest flashpoint of a dialectical debate on whether the US economy has been gathering momentum, US Commerce Department data released earlier on Thursday had stoked hopes of a faster-than-anticipated turnaround in US economy as new orders for US-made core capital goods had witnessed a robust rise in December, signalling the latest in a string of silver linings for a US economy which apparently has been well on course towards an economic recovery from a pandemic induced fiscal slump.
On top of that, according to data from US Commerce Department released earlier in the day, new orders for US-borne core capital goods, a closely monitored proxy for the health of US economy, soared by 1.1 per cent in December after surging as much as 1.3 per cent in November, while business expenses on equipment remained solid, suggesting a persistent recovery in the US factory activity in a near-term outlook.
If truth is to be told, US manufacturing activity that accounts for roughly an-eighth of entire US economy, had been propelled higher in recent month by an intransigent demand of goods such as electronics, furniture and home appliances as nearly a quarter of US labour force had been working from home due to a still-inflaming pandemic outbreak.
US orders for core capital goods surge 1.1% in December
In factuality, latest rise in orders for US-borne core capital goods came against the backdrop of a steep rebound in private payrolls last month, while US employers had added 174,000 jobs last month after shedding jobs for the first time in eight months in December.
Concomitantly, in the latest sign of an economic recovery lurking over the horizon, orders for non-defence capital goods excluding aircrafts revised 0.7 per cent higher in December, while shipments for core capital goods stepped up 0.7 per cent, up from a previous report of a 0.5 per cent in gains.