U.S. Outlook: What does the drop in new orders mean?

Posted By Scott Anderson In Economic Outlook | No Comments

You know the saying, “Get used to disappointment”? That’s what happened to economists’ expectations for durable goods orders for February.

Chart showing recent rise in inventory shipment ratios. [1]For more on what this means and other economic developments this week, see my full analysis. Highlights are outlined below, followed by a link to the full U.S. Outlook report, delivered on March 27.

Key observations:
  • 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.

Click here to read my full report. [2]


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URL to article: https://changematters.bankofthewest.com/2015/03/27/u-s-outlook-what-does-the-drop-in-new-orders-mean/

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[1] Image: http://blog.bankofthewest.com/wp-content/uploads/2015/03/chart_inventoryratios_032715.jpg

[2] Click here to read my full report.: http://blog.bankofthewest.com/wp-content/uploads/2015/03/BankoftheWest_USOutlook_03_27_15.pdf

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