Boost in US Capital Goods Orders Amid Economic Turn

In September, US-manufactured capital goods orders rose unexpectedly, though third-quarter business equipment spending may have slowed slightly. Despite high borrowing costs, anticipated Federal Reserve rate cuts could enhance investment. Reduced electoral uncertainty may further bolster business investment. Economic indicators show mixed signals on consumer sentiment and durable goods orders.

September saw a surprising increase in US-manufactured capital goods orders, countering expectations of a slowdown. Despite the surge, third-quarter business equipment spending might have decelerated, analysts suggest.

The Federal Reserve's expected interest rate cuts could stimulate investments, despite previous rate hikes. As political uncertainty wanes following the presidential election, businesses anticipate a stable environment conducive to capital investment.

Economic data presents a mixed outlook: consumer sentiment improved slightly, yet durable goods orders slumped, notably in transportation. Boeing's challenges with aircraft orders compound the concerns, yet fundamentals in primary metals and fabricated products showed growth.

(With inputs from agencies.)