US durable goods orders below expectations in June
Durable goods orders fell 4% last month witnessing the biggest decrease since August 2014, after falling 2.8% in May. New orders for US manufactured goods increased less than expected in June due to weak demand on machinery which shows an ongoing downturn in business spending.
Business spending has declined since 2015. Lower oil prices which put pressure on profits in the energy sector, the uncertainty of global demand and the approaching US presidential election caused companies to cut capital spending budgets.
In June, orders for electrical equipment, appliances and components rose 0.8%, however orders for machinery fell 0.1% and primary metals declined 1.3%. Computers and electronic products orders fell 2.2% and posted the biggest decline since April 2015. Orders for transportation equipment and bookings for aircraft both declined, respectively by 10.5% and 58.8%. On the other hand, orders for automobiles increased 2.6%. Unfilled core capital goods orders also dropped 0.2% in June after retreating 0.4% in May.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Softer expectations take hold of Europe’s PE market for November
- Asia PS, ABS markets under pressure from multi-year low styrene
- US PE exports to continue to dominate Q4 market outlook
- Taiwanese major sells out Nov PVC quota to India ahead of Diwali
- Will Asian spot ethylene markets pull back from 10-year lows?
- October hikes prove short-lived in Europe’s PP market
- Firming PE trend stumbles, medium-term expectations stifled in Turkey
- PET prices fail to rebound from near 3-year low in Asia, Europe
- African PP, PE markets start Q4 in limbo amid varying pricing policies
- Will Taiwanese major roll over November PVC offers?