Orders for U.S. capital equipment barely increased in November, consistent with a downshift in corporate investment throughout the year that’s weighed on economic growth.
Bookings for non-military capital goods excluding aircraft — a proxy for business investment — rose 0.1 per cent, matching projections, after a 1.1 per cent jump in October that followed consecutive monthly declines, according to Commerce Department figures issued Monday.
Orders for all durable goods, or items meant to last at least three years, unexpectedly dropped two per cent, reflecting a slump in military aircraft and a drop in civilian planes.
Key Insights
• Combined with a decrease in core shipments, the figures highlight a lack of appetite for capital expenditures, with profit growth cooling and business sentiment still subdued amid global demand concerns. Despite a thawing in the U.S.-China trade war after this month’s phase-one agreement, a more sweeping deal that could spark greater investment and re- charge world growth prospects is a bigger challenge.
• Other recent reports have showed manufacturing, while no longer suffering larger setbacks, remains weak. The Federal Reserve Bank of Philadelphia’s factory index dropped in December to a six-month low, while the New York Fed’s manufacturing gauge barely expanded.
• The headline durable-goods figure was pressured by a decline in orders of commercial aircraft despite Boeing Co. reporting earlier this month that it received 63 orders in November compared with just 10 in October. Orders for motor vehicles and parts rebounded, likely reflecting the effects of the end of the auto workers’ strike at General Motors Co.
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• Shipments of non-defence capital goods excluding aircraft — a measure used in gross domestic product calculations — fell 0.3 per cent after a 0.7 per cent increase. The report showed core business- equipment shipments fell 2.9 per cent on a three-month annualized basis through November.
• Excluding transportation equipment, which tends to be volatile, durable-goods orders were little changed after a 0.3 per cent gain. Bookings for military hardware plunged 35.6 per cent, the most since February 2017, while defence aircraft orders slid 72.7 per cent.
• Durable goods inventories expanded 0.4 per cent for a second month.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in the technology and base meta sectors, while U.S. stock markets also climbed higher.
The S&P/TSX composite index was up 106.70 points at 24,179.21.
In New York, the Dow Jones industrial average was up 280.87 points at 42,361.24. The S&P 500 index was up 26.51 points at 5,777.64, while the Nasdaq composite was up 69.52 points at 18,252.44.
The Canadian dollar traded for 73.08 cents US compared with 73.22 cents US on Tuesday.
The November crude oil contract was down 67 cents at US$72.90 per barrel and the November natural gas contract was down eight cents at US$2.66 per mmBTU.
The December gold contract was down US$2.30 at US$2,633.10 an ounce and the December copper contract was down five cents at US$4.41 a pound.
This report by The Canadian Press was first published Oct. 9, 2024.
