US orders improve in February, reinforcing optimism for investment.

Economic Analysis of Bankia

The strong start to the year in terms of orders, shipments, and business surveys reinforces the positive signal for both the manufacturing sector and investment in capital goods.

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Orders are growing strongly again in U.S. and reaffirm the expansive signal from the polls, prolonging the reactivation of the in the short term. manufacturing activity and the investment in capital goods.

 

In February, both the orders (1,7% vs 2,3%) as the shipments (0,3% vs -0,1%) of durable goods And, moreover, they did so in a generalized way (that is, excluding the most volatile transport and defense items), which continues the improvement from February.

 

The analysis by game reveals positive signs for the investment in capital goods: the orders of capital goods They have remained stagnant at the start of this year (-0,1% in February vs. 0,1%), but capital inflows rebounded strongly in February (1,0% vs. -0,3%) and are consistent with our expectations that the Your Strategic It will continue to grow at very dynamic rates in the short term.

 

 

 

 The breakdown by items reveals positive signs for investment in capital goods.

 

 

 

The good start to the year in terms of orders, shipments, and business surveys reaffirms the positive signal for both Manufacturing sector as well as for investment in capital goods, which are definitively leaving behind the burdens of 2015-16 and are already showing clear signs of recovery: the manufacturing activity has rebounded strongly in January and February (+0,5% in both months), especially durable goods (+0,6% in February); while the investment in equipment It already grew by 1,9% in Q4 16 (after four consecutive quarters of decline) and we expect it to grow by around 9,0% in Q1 17. In the case of investment, the stagnation of capital goods orders at the beginning of this year may be anticipating that these growth rates are not sustainable and that, therefore, investment will grow at more moderate rates during the rest of the year.