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2020 ended the longest economic expansion in US history

In March, new orders for US-made goods saw the most significant decline in history. They could sink further since disruptions from the coronavirus pandemic broke supply chains and halted exports.

The US Department of Commerce said on Monday factory orders declined 10.3%. It has been the most substantial decrease since the series started in 1992.FinanceBrokerage – United States: The federal judge ruled in favor of the Congress saying it didn’t unconstitutionally penalize Democratic-leaning states when it imposed a cap states and local taxes. / us

Instead of being unchanged, the data for February orders slipped 0.1%. Economists had anticipated factory orders to tumble 9.7% in March. Factory orders shrank by 2.8% year-on-year in March. Pending orders at factories fell 2.0% in March after nudging up 0.1% in the previous month.

Inventories at factories declined by 0.4 % in February and fell by 0.8% in March. Shipments of manufactured goods decreased by 5.2% in March after dropping 0.3% in the prior month.

 

The manufacturing sector has been under pressure in the US

Manufacturing accounts for 11% of US economic activity. So, the country’s economy is reeling from nationwide lockdowns to curb the spread of the coronavirus pandemic. 

According to the institute for supply management, ISM, the measure of national factory activity declined to an eleven-month low in April. 

Since the Trump administration’s trade war with China, the US manufacturing sector has been under pressure. In the first quarter of the year, manufacturing production plummeted at its sharpest pace in eleven years. Business investment shrunk for four straight quarters.

The first quarter of 2020 ended the longest economic expansion in US history. Gross domestic product declined at its steepest pace since the Great Recession of 2007-2009.

 

Transportation orders plunged

According to the analysts, the US started reopening. Still, it would take at least two years to bring the country’s economy back as it was before the coronavirus crisis. Analysts expect a long period of unemployment and the highest level of bankruptcies.

Since mid-March, at least 30 million Americans had filed requests for unemployment benefits. State and the local government ordered nonessential workers to stay at home to reduce the spread of the coronavirus pandemic.

Meanwhile, transportation equipment orders in the US fell 41.3% after growing 4.6% in February. Additionally, a 296.2% drop in demand for civilian aircraft weighed down orders. 

Moreover, orders for ships and boats declined by 65.3% in March. Machinery orders decreased by 0.5% in March.

According to the government report, shipments for nondefense capital goods dipped 0.1% in March. Furthermore, orders for core capital goods dropped by 0.2% in March.

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