The US Commerce Department has reported that US factory orders fell 1.6% in January, exceeding analysts’ predictions for a 1.8% drop, following an increase of 1.7% in December.
According to the report, the decline in factory orders was mainly due to a decrease in contracts for Boeing aircraft. Typically, Boeing receives new orders at the end of the year, but this year, it witnessed a significant decline in new orders at the beginning of the year, leading to a decline in factory orders.
The report also showed a decline in orders for transportation equipment, which fell 4.7%, while orders for non-defense capital goods excluding aircraft increased 0.5%.
Despite the decline in factory orders, the overall economic outlook for the US remains positive, with the labor market and consumer spending showing strength.
In conclusion, the US Commerce Department has reported a decline of 1.6% in US factory orders in January, which beat analysts’ expectations. The main reason for the decline was the decrease in contracts for Boeing aircraft. However, despite this decline, the overall economic outlook for the US remains positive, with the labor market and consumer spending showing strength.