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.
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