TEHRAN, Feb 04 -Factory orders in the US fell more sharply than expected in November, suggesting a slowdown in US manufacturing toward the end of 2018 and raising fresh concerns about declining growth in the global economy.
TEHRAN, Young Journalists Club (YJC) - Factory goods orders fell 0.6 percent, the US Commerce Department said Monday, after an unrevised 2.1 percent drop in October.
Orders for machinery tumbled 1.7 percent after gaining 0.2 percent in October. There were large declines in orders for industrial and metalworking machinery, as well as ventilation, heating, air‐conditioning and refrigeration equipment.
Orders for electrical equipment, appliances and components dropped 1.1 percent after rising 1.0 percent in October. But orders for transportation equipment rebounded 3.0 percent after plunging 12.4 percent in October.
The Commerce Department also said November orders for non-military capital goods excluding aircraft, which are seen as a measure of business spending plans on equipment, dropped 0.6 percent.
Shipments of core capital goods, which are used to calculate business equipment spending in the gross domestic product report, slipped 0.2 percent.
Meanwhile, US consumer sentiment deteriorated in early January to its weakest level since Donald Trump’s US presidential victory in 2016, a widely followed private survey showed last week, citing the federal government shutdown and worries about the economy.
Market participants are also watching for developments surrounding the US-China trade war, which has dragged on world markets as investors worry that the dispute could contribute to a potential global economic slowdown.
The risk of an economic recession in the United States has grown to the highest level in seven years, according to a survey by economists released in January.
There is now a 25 percent chance of a recession within the next 12 months, the highest level since October 2011 and up from just 13 percent last year, a monthly poll of economists conducted by The Wall Street Journal found.
The growing risk of a recession came from a slew of worries including US trade tensions with China, rising interest rates and the sharp stock market selloff, the survey revealed.
A survey by Reuters in December indicates that the risk of a US recession in the next two years has risen to 40 percent.
Source: Press TV
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