Equipment Orders Data Disappoints

Unites States equipment orders showed disappointing numbers in the month of September. An economic report from Commerce Department showed that corporate investment have difficulty gaining traction, as orders for non-military goods excluding aircraft fell about 1.2%.  
 
The data reveals that overall business investment remained slow throughout the third quarter, mostly because of weak demand and slow overseas growth. Omair Sharif, senior U.S. economist at Societe Generale in New York, said in a statement, “Business investment has been mired in a slump for more than a year and there’s nothing in these numbers to suggest it’s about to break out… It’ll still be a small drag on third-quarter growth.”
 
The numbers on non-military capital goods excluding aircraft are used to calculate gross domestic product, therefore following shipment data of these product may predict the direction the country’s economic state. Shipments of these goods fell 4.4% in the three months ended in September.
 
Despite the negative news today, economist remain hopeful. Economists claim that better days will come as the negative impacts of a stronger dollar and low oil prices begin to fade.

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