Gold prices steady as traders assess Fed rate outlook after soft US data
The total value of new orders for long-lasting manufactured goods, known as Durable Goods Orders, has continued to decline, according to recent economic data. The actual figure for the Durable Goods Orders came in at a decline of -2.2%, marking a further decrease from the previous month.
This disappointing figure falls short of the forecasted growth of 0.3%, indicating a weaker performance in the manufacturing sector than economists had anticipated. This is the second consecutive month that the Durable Goods Orders have recorded a decline, following the previous month's decrease of -2.0%.
The Durable Goods Orders serves as a key indicator of future manufacturing activity and provides insights into the health of the broader economy. Long-lasting manufactured goods include items such as vehicles, machinery, and equipment, the demand for which is closely tied to business investment and consumer confidence.
The greater than expected decline suggests a slowdown in the manufacturing sector, which could have implications for the U.S. dollar. A higher than expected reading is typically seen as bullish for the USD, while a lower than expected reading is considered bearish. With this latest figure falling significantly short of forecasts, it could put downward pressure on the USD.
This continued decline in Durable Goods Orders may raise concerns about the health of the U.S. manufacturing sector and its potential impact on the overall economy. As a key sector of the economy, a slowdown in manufacturing can have ripple effects on employment, consumer spending, and economic growth.
Given the importance of the manufacturing sector, economists and investors will be closely watching the next release of Durable Goods Orders data for signs of a turnaround or further decline. This will be crucial in shaping expectations for future economic performance and monetary policy decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.