WASHINGTON (Reuters) – New orders for major US capital goods fell sharply in February as demand for machinery and other products declined, indicating a sharp decline in business investment. business that analysts said the economy was in recession.
Plywood made in the United States is displayed for sale in Los Angeles, California, USA, April 26, 2017. REUTERS / Mike Blake
The coronavirus pandemic has darkened prospects for business investment when measures to prevent highly contagious viruses have stopped the country abruptly. The Federal Reserve has taken extraordinary steps to ease the blow to the economy. US senators were set up to vote on Wednesday over a $ 2 trillion fiscal stimulus package.
Business investment is a key factor in every recession and right now the pendulum is heading in the wrong direction with falling orders that are likely to drag the economy over the cliff and recession in March, Chris Rupkey, Chief economist at MUFG in New York.
Orders for non-defensive capital goods except aircraft, a closely monitored authorization for business expenditure plans, fell 0.8% in February after an increase of 1.0% in January, Ministry of Trade said.
These core capital goods orders that were previously reported increased by 1.1% in January.
Economists participating in the Reuters survey forecast core capital orders fell 0.4% in February. There is a reduction in orders for machines, main …
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