US manufacturing sector’s outlook brightens

Against Expectations: US Manufacturing Sector and the Future of the Economy”.

In February, the United States saw an increase in orders for durable goods, defying expectations and indicating improvement in business investment in equipment. Despite rising interest rates negatively impacting demand for goods, the manufacturing sector, which accounts for 10.3% of the economy, is showing signs of progress. This positive outlook is being driven by anticipations of rate cuts by the Federal Reserve later this year.

The health of the manufacturing 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 such as transportation equipment and machinery rose by 1.4% in February after a revised downward data for January showed a 6.9% drop in orders. Economists had predicted a 1.1% rise in durable goods orders. Additionally, orders for non-defense capital goods excluding aircraft, a key indicator of company spending plans, increased by 0.7% in February after a 0.4% decrease the previous month.

In March, consumer confidence remained steady according to a survey by the Conference Board. Concerns about a possible recession took a backseat to worries about the political environment leading up to the presidential election in November


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