Due to slowed economic activity through mid-July, demand for long-lasting U.S. manufactured goods fell in June and July.
The Feds track 8 0f 12 regions and said: “Economic activity continued to grow; however, the pace has moderated in many districts,” the Fed said.
“We’re getting confirmation that this is more than just a soft patch in the first part of the year, that it’s a more fundamental slowdown triggered in part by the political environment and jittery markets,” said Michelle Meyer, an economist at Bank of America Merrill Lynch.
The latest Fed talking point is to blame the political climate. This has been going on long before the climate in DC changed and it has more to do with the political decisions.
The core category of factory orders is an indicator of business spending plans and could result in slowed growth in spending by businesses on equipment in the third quarter according to economists.
Non-defense capital goods orders slipped .4% (not aircraft) last month after a rise of 1.7% in May.
“The June decline is somewhat worrisome regarding the vigor of the trend in capital spending,” said Michael Feroli, an economist at JPMorgan in New York. “This is particularly so given that the June data probably predates any debt ceiling-driven precaution on the part of business behavior.” Read here: Downturn in demand for U.S. factory goods