US: Capital spending remains intact – Wells Fargo By MSalordFX UnitedStates Banks Manufacturing
rint due to a drop in aircraft bookings, the March durable goods report shows that capital spending remained intact in March with orders rising across all core categories, explained analysts at Wells Fargo. “The fact that orders for durable goods increased just 0.8% in March rather than the 1.0% that had been expected by the consensus is partly a function of weakness in aircraft orders. Civilian aircraft orders were down 9.9% and defense aircraft orders tumbled 25.6%.
“The underlying trend in nondefense capital goods shipments remains strong, up 9% at an annualized rate over the past three months. But after adjusting for the run up in prices, we expect to see a more muted outturn for first quarter equipment spending when first quarter GDP is released on Thursday.”and high inflation, an overlooked positive for economic growth is the fact that capital spending remains intact.
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