US manufacturing slows


New orders for US manufactured goods posted their largest drop in six months in April after a steep fall in demand for transportation equipment, suggesting some cooling in factory activity.

Durable goods orders declined 3.6 per cent during April, worse than economists' expectations for a 2.2 per cent fall. March's orders were revised up to a 4.4 per cent rise from a 4.1 per cent increase, according to the US Commerce Department.

While durable goods orders are extremely volatile, the report added to a raft of recent data suggesting that the loss of economic growth momentum encountered as the year started persisted into the early part of the second quarter.

It also underscored the magnitude of the impact of supply chain disruptions from the Japanese earthquake on the economy.

"It is clear, not only from this report but from others, that the US economy is encountering its fair share of speed bumps," said Jennifer Lee, a senior economist at BMO Capital Markets in Toronto.

So far, data such as retail sales and industrial production have been generally lacklustre.

The weak durable goods report could prompt economists to lower their forecasts for second-quarter growth, currently ranging between 2.5 and 3.5 per cent.

Related news & editorials

  1. 09.03.2020
    by      In , In , In
    In May, Advanced Manufacturing Expo will be held for the first time to inspire future growth for the manufacturing industry and industrial sector. The expo’s conference and exhibition will showcase the latest advanced manufacturing production solutions and insights with dedicated solutions... Read More
  2. 23.08.2019
    by      In
    Swiss-based CNC specialist NUM has launched an innovative accelerometer-based active vibration control system for CNC machine tools. The system, primarily designed to improve machining by virtually eliminating tool head vibration, further helps increase productivity by maximising material removal... Read More
  3. 13.08.2019
    by      In
    Maintenance in the era of Industry 4.0 means a clear change of paradigm. ‘Predictive maintenance’ makes it possible to continuously monitor the status of a machine tool, which can reduce unscheduled shutdowns and the costs of failure. Instead of merely reacting to a failure or fault or carrying out... Read More
  4. 21.06.2019
    by      In
    Australian bicycle manufacturer Bastion Cycles produces high-performance road bikes that use filament-wound carbon fibre tubes and a modular design for titanium lugs. For the first three years of operation, Bastion outsourced production of the lugs to RAM3D, an additive manufacturing (AM) provider... Read More