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Updated: U.S. Durable Goods Orders Fall 1.4% In February

By Kitco News
Wednesday March 25, 2015 8:30 AM

Editor's Note: The article was updated to include more information from the report and comments from CIBC

(Kitco News) - The U.S. economy and the manufacturing sector lost momentum in February as the Department of Commerce reported a fall in durable goods orders Wednesday.

According to the data, new orders for long-lasting manufactured goods fell by $3.2 billion, or 1.4%, to $231.3 billion last month, following January's revised increase of 2.0%; previous data showed an initial rise of  2.8% in orders. According to consensus forecasts, economists were expecting to see a 0.3% rise in orders.

Demand for manufactured goods, stripping out the volatile transportation sector, fell 0.4% to $161.8 billion last month, following January's revised decrease of 0.7%. Ahead of the report, consensus forecasts were calling for a 0.3% rise.

The report notes that inventories remain at record high levels, having seen increases in 22 of the last 25 months. According to teh data, inventories increased by $1.1 billion or 0.3% last month.

Some analysts have noted that the strong U.S. dollar has had a significant impact on exports of manufactured goods.

Last week, the Federal Open Market Committee (FOMC) said in its monetary policy statement that the economic growth has "moderated somewhat." The committee also acknowledged that "export growth has weakened."

Andrew Grantham, senior economist from CIBC World Markets, said that the latest data adds to the growing disappointing trend in the U.S. economy. He added that weakness in durable goods data was one of the first signs of slower economic growth at the end of 2014 and the start of this year.
“And the latest figures suggest that the outlook for business investment at least in the first half of 2015 is very soft,” he said.

By Neils Christensen of Kitco News; nchristensen@kitco.com
Follow Neils Christensen @neils_C

 

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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