Jeffry Bartash of MarketWatch reports that U.S. manufacturers are ending the year on a weak note, with factory orders falling 1.1% in November, the third decline in four months. While core business investment rose 0.7%, durable goods orders have dropped 5.2% over the past year. Optimism remains tied to Trump’s promised tax cuts and deregulation, though uncertainty around tariffs and labor costs leaves businesses cautious. He writes:
American manufacturers might be more optimistic about ending a two-year slump after a business-friendly administration under President-elect Donald Trump takes over in January, but they are ending the current year on a sour note.
Orders at U.S. factories fell 1.1% in November to mark the third decline in the past four months.
Economists polled by the Wall Street Journal had forecast a 0.3% increase.
The report on durable goods was moved up from Tuesday, as originally scheduled, because of an executive order by President Biden late last week closing the federal government on Dec. 24.
Durable-goods orders slipped a narrow 0.1% if transportation — automobiles and planes — are omitted, the government said. […]
The hesitancy of buyers suggests some worries about taking on big purchases, a sign that they lack full confidence in the economy.
The Republican Trump, taking back the White House after Democrat Joe Biden’s term in office, promises reductions in taxes and regulations, but his threat to boost tariffs and deport millions of unauthorized immigrants could raise material and labor costs for businesses.
For now businesses are taking a wait-and-see attitude.
Read more here.
