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Updated February 27th, 2024 at 19:30 IST

US durable goods orders declined more than expected in January

Despite this decline, the manufacturing sector, which contributes 10.3 per cent to the economy, appears to be recovering.

Reported by: Business Desk
US durable goods orders declined more than expected in January
US durable goods orders declined more than expected in January | Image:Unsplash
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Durable goods order fall: Orders for long-lasting US manufactured goods experienced a larger-than-expected decline in January, primarily due to a significant drop in bookings for commercial aircraft.

The Commerce Department's Census Bureau reported a 6.1 per cent decrease in durable goods orders last month, following a revised 0.3 per cent decline in December.

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Despite this decline, the manufacturing sector, which contributes 10.3 per cent to the economy, appears to be recovering. This follows a slight easing in production in 2023, coinciding with 525 basis points of interest rate hikes from the Federal Reserve since March 2022.

However, a recent survey from the Institute for Supply Management indicated a marginal contraction in manufacturing PMI in January.

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Non-defence capital goods orders, excluding aircraft, a key indicator of business spending plans, edged up 0.1 per cent in January after a revised 0.6 per cent decline in December. Business spending on equipment also showed a modest rebound in the fourth quarter after contracting in the July–September period.

Overall, the economy grew at a 3.3 per cent annualised rate in the last quarter of 2023, following a 4.9 per cent expansion in the third quarter.

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(with Reuters inputs)

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Published February 27th, 2024 at 19:30 IST

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