"The trend in durable goods orders remains decidedly weak" amid worries about a global growth slowdown and trade tensions.
“We expect further bumps along the road for manufacturing as a slowing global economy and escalating tariffs on major U.S. trading partners pose headwinds."
Core capital goods orders rebounded from a sharp drop in December, suggesting the slowdown in business investment may be shallow.
"It appears the bloom is off the economic expansion rose. The data doesn’t paint a picture of strong growth going forward.”
Orders for core capital goods dropped for the second time in three months, suggesting the slowdown in business investment is continuing.
Orders for core capital goods, the proxy for business spending, ticked down for the second straight month in September.
Activity could begin to slow as the labor market tightens and the China-U.S. trade war starts to affect supply chains.
The decline in the proxy for business spending plans "is not a red flag for the economic outlook yet even if the caution light should be left on.”
The February gain in orders was a positive sign for business spending after declines in the previous two months.
“Last year’s moonshot in business spending is showing some signs of returning to earth,” one economist says.
With core capital goods orders up 1.3% last month, "business equipment investment appears to be going from strength to strength."
The better-than-expected increase, combined with another gain in core capital goods orders, indicate manufacturing's recovery is picking up steam.
