Manufacturing Sector in the US Showing Improvement, Despite Rising Interest Rates: A Look at February’s Data

US manufacturing sector’s outlook brightens

The manufacturing sector in the United States is showing signs of improvement, with orders for durable goods increasing more than expected in February. This indicates a positive outlook on business investment in equipment for the first quarter. Despite rising interest rates impacting demand for goods, economists are optimistic about the future due to expectations 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. In February, orders for durable goods such as transportation equipment and machinery rose by 1.4%, following a revised downward data for January which showed a 6.9% drop in orders. Economists had anticipated a 1.1% rise in durable goods orders, but these expectations were exceeded. Additionally, orders for non-defense capital goods excluding aircraft increased by 0.7% in February after a 0.4% decrease the previous month, indicating further evidence of company spending plans.

In terms of consumer confidence, a survey by the Conference Board revealed that it remained steady in March, with concerns about political environment leading up to the presidential election taking precedence over worries about possible recession. The consumer confidence index for March was 104.7 almost same as February’s revised figure of 104.8 .

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