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