Despite rising interest rates and concerns about a possible recession, orders for durable goods in the United States increased more than expected in February. This suggests that business investment in equipment is improving, with the manufacturing sector showing signs of growth. The health of this sector is crucial for Mexico as it plays a significant role in integrating the Mexican economy with the US economy.
According to data from the Census Bureau of the Department of Commerce, orders for durable goods rose by 1.4 percent in February after a revised downward data for January showed a 6.9 percent drop in orders. Economists had anticipated a 1.1 percent rise in durable goods orders, but this increase was driven by expectations of rate cuts by the Federal Reserve later this year. Additionally, orders for non-defense capital goods excluding aircraft increased by 0.7 percent in February after a 0.4 percent decrease the previous month, indicating that companies are planning to spend more on equipment purchases.
In terms of consumer confidence, a survey by the Conference Board revealed that it remained steady in March, with concerns about a possible recession taking a backseat to worries about the political environment leading up to the presidential election in November. The consumer confidence index for March was 104.7, almost the same as February’s revised figure of 104.8, indicating that consumers were still optimistic about their financial future despite rising interest rates and other economic factors affecting their purchasing power.
Overall, these positive signs indicate that businesses are investing more heavily in equipment purchases and that consumers are still optimistic about their financial future despite rising interest rates and concerns about inflation or recession.
The manufacturing sector has been showing signs of improvement lately as businesses invest more heavily in equipment purchases and expect rate cuts by the Federal Reserve later this year.
Economists had anticipated an increase of 1% but instead saw an increase of 1% which indicates positive outlook among businesses.
Despite rising interest rates impacting demand for goods, Mexico plays a significant role in integrating its economy with the US economy and hence its health is crucial to both countries.
Orders for non-defense capital goods excluding aircraft increased by 0% after decreasing by % previously which suggests that companies plan to spend more on equipment purchases.
Furthermore, consumer confidence remained steady during March due to concerns about political environment leading up to presidential election but overall they remain optimistic about their financial future despite rising interest rates and other economic factors affecting their purchasing power.
