Later this week, US Commerce Department data had unleashed that new orders for US-borne factory goods had witnessed a strong upsurge in November even as new orders for US-borne core capital goods fell amid a rapid upsurge in omicron cases which would more likely to weigh further on business borrowing on equipment.
Nevertheless, latest Commerce Department data underscoring a sharp increase in new US factory orders, came against the backdrop of a US economy which has been zeroing in on a maximum employment, as US nonfarm payrolls report had revealed that US unemployment rate had hit a 22-month low of 3.9 per cent, eventually easing worries over a downturn in US manufacturing activities in December which would more likely to be caused by a lack of available workers, suggesting analysts.
On top of that, followed by the data, analysts were quoted saying that new orders for US factory goods that largely coincides US manufacturing output accountable for roughly an 11.9 per cent of entire US economic activities, had been corroborated by a depletion in business inventories following a holiday quarter which had witnessed a record sales as anticipated.
New orders for US factory goods surge in November
According to latest US Commerce Department data, factory orders surged by a flabbergasting 1.6 per cent in November, while October data was revised higher to 1.2 per cent compared to a previously reported 1.0 per cent, beating an analysts’ estimate of 1.5 per cent.
On top of that, new orders for US factory goods had surged as much as 12.9 per cent over past twelve months through November on a year-on-year basis. Shipments of factory goods, in tandem, climbed 0.7 per cent in November that followed a 2.0 per cent jump in October, mostly galvanized by anticipation of a robust holiday quarter, though, November shipments rose slowly in contrast to October as American shoppers had reportedly started off last year’s holiday shopping on early-November amid concerns over a lingering supply chain constraint.