US core capital goods orders climb, consumer confidence dips
Make us a preferred source
Make us a preferred source on Google
The news: US orders for business equipment increased by more than projected in July, suggesting firms are carrying on with investment plans despite uncertainty around trade and tax policy.
The numbers: Data from the US Commerce Department showed the value of core capital goods orders, a proxy for investment in equipment that excludes aircraft and military hardware, increased 1.1% in July after a revised 0.6% decrease the month prior. Bookings for all durable goods fell 2.8% to USD302.8 billion ($466.15 billion).
Meanwhile, data from the Conference Board showed US consumer confidence sliding in August tied to concerns around jobs and income. The CB’s gauge of sentiment decreased 1.3 points to 97.4 after an upward revision to July.
The context: Consumer confidence is yet to recover to levels achieved prior to the pandemic and a slowdown in the US labour market is adding to economic concerns around the impact of Trump’s trade tariffs.
What they said: Stephanie Guichard, senior economist, global indicators at The Conference Board explained: “Notably, consumers’ appraisal of current job availability declined for the eighth consecutive month, but stronger views of current business conditions mitigated the retreat in the Present Situation Index. Meanwhile, pessimism about future job availability inched up and optimism about future income faded slightly. However, these were partly offset by stronger expectations for future business conditions.”
The sources: US Census Bureau, The Conference Board
