Economy showing signs of recovery as business investment in equipment rises

US manufacturing sector’s outlook brightens

In February, orders for durable goods in the United States increased more than expected, signaling an improvement in business investment in equipment. Despite rising interest rates impacting demand for goods, the manufacturing sector, which makes up 10.3 percent of the economy, is showing signs of improvement. This positive outlook is driven by expectations of rate cuts by the Federal Reserve later this year.

According to recent data from the Census Bureau of the Department of Commerce, orders for durable goods such as transportation equipment and machinery rose by 1.4 percent in February. This increase follows a revised downward data for January which showed a 6.9 percent drop in orders. Economists had anticipated a 1.1 percent rise in durable goods orders. Additionally, orders for non-defense capital goods excluding aircraft, a key indicator of company spending plans, increased by 0.7 percent in February after a 0.4 percent decrease the previous month.

The health of the manufacturing sector is crucial for Mexico as it plays a significant role in integrating the Mexican economy with the US economy. The survey by Conference Board revealed that consumer confidence remained steady in March with concerns about a possible recession taking a backseat to worries about the political environment leading up to the presidential election in November. The consumer confidence index for March was 104.7, almost the same as February’s revised figure of 104.8

Leave a Reply