Weather slams U.S. business equipment spending, while supply disruptions weigh – News 24-7 Live News 24-7 Live
Weather slams U.S. business equipment spending, while supply disruptions weigh

Weather slams U.S. business equipment spending, while supply disruptions weigh

  • New orders for key U.S.-made capital goods fell in February after nine straight monthly increases.
  • The data suggested some cooling in business spending on equipment in the first quarter.
  • Orders for durable goods, items ranging from toasters to aircraft that are meant to last three years or more, decreased 1.1% in February after jumping 3.5% a month earlier.

New orders for key U.S.-made capital goods and shipments unexpectedly fell in February after nine straight monthly increases, but a rebound is likely as factory activity picked up early this month amid warmer temperatures.

The weak report from the Commerce Department on Wednesday joined a stream of other data in showing severe disruptions to economic activity wrought by last month’s deep freeze, including in Texas and other parts of the densely populated South region.

Economists are maintaining their lofty first-quarter gross domestic product growth estimates. Warmer weather, the White House’s $1.9 trillion Covid-19 pandemic rescue package and increased vaccinations are expected to boost activity in March.

News Source:- CNBC

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