US Goods Orders Grow at a Slower Pace in November, Could Impact Q4 GDP - Forex News by FX Leaders
US Goods Orders Grow at a Slower Pace in November, Could Impact Q4 GDP

US Goods Orders Grow at a Slower Pace in November, Could Impact Q4 GDP

Posted Tuesday, December 24, 2019 by
Arslan Butt • 1 min read

Business confidence among American companies continues to remain strained on account of the continued trade tensions with China. Despite the recent confirmation that both sides will sign the phase one trade deal shortly, recent economic data releases point to business investment weighing on economic growth in the last quarter of the year.

According to the US Commerce Department, core capital goods orders climbed 0.7% higher YoY in November, higher than economists’ forecast which was for a reading of 0.2%. However, the growth was lesser than in October when this figure had gained +1.1%.

Orders for non-defense capital goods had gained 0.1% in November – a key factor which gauges business spending plans. Meanwhile, shipments of core capital goods contracted by 0.3% for the month of November, a factor considered for the calculation of equipment spending by the US government when measuring GDP. The figure for October was also revised lower from 0.8% to 0.7%.

Based on these figures, economists anticipate Q4 GDP to range anywhere between 1.5% to 2.3% YoY. In Q3 2019, the US economy’s GDP stood at 2.1%.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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