Quotes from Commerzbank Corporates & Markets:
- Contrary to expectations, US durable goods orders increased 0.8% in April. Key orders for capital goods decreased, but from an upwardly revised base in March. All in all, the report supports our view that the decline in investment in equipment in Q1 was only an outlier.
- Capital spending is likely to increase in Q2, which would be in line with our view that the decline in Q1 was an outlier that partly reflected a payback after a very strong Q4 2013 and partly showed the impact of adverse weather.
- The ongoing trend increase in capacity utilization in the manufacturing sector argues against a sustained weakness in capital spending. The improved outlook for business investment also suggests an increased readiness to hire, which bodes for a sustained improvement in the labor market.
Published: 2014-05-27 17:53:00 UTC+00
Us Order Intake Surprises on Upside in April
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