U.S. Outlook: What does the drop in new orders mean?
You know the saying, “Get used to disappointment”? That’s what happened to economists’ expectations for durable goods orders for February.
- The sixth consecutive monthly drop in non-defense capital goods orders helps explain the FOMC’s caution about raising interest rates over the near term.
- The rapid strengthening of the U.S. dollar is one factor driving the downturn in non-defense capital goods orders.
- Inventory shipment ratios have been on the rise and are now out of whack with current demand.
- The U.S. economy has gotten off to another shaky start, much as it did in Q1 of last year.