{"id":1714369,"date":"2022-10-28T06:01:03","date_gmt":"2022-10-28T10:01:03","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1714369"},"modified":"2022-10-28T06:03:57","modified_gmt":"2022-10-28T10:03:57","slug":"business-equipment-spending-plunges-in-an-ominous-sign-for-u-s-economy","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/business-equipment-spending-plunges-in-an-ominous-sign-for-u-s-economy\/","title":{"rendered":"Business Equipment Spending Plunges in an Ominous Sign for U.S. Economy"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbusiness-equipment-spending-plunges-in-an-ominous-sign-for-u-s-economy%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1714369&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Spending on business equipment fell in the month of September amid an overall decline in manufacturing activity, signaling a lack in business confidence across the economy.<\/p>\n<p>Core capital goods orders\u2014non-defense capital goods orders excluding aircraft\u2014fell by 0.7 percent in September, to $74.77 billion from $75.33 billion in the previous month, according to an Oct. 27 press release from the U.S. Census Bureau. Core capital goods orders, a closely watched proxy for business-spending plans, measures cost of orders received by manufacturers of capital goods, which refer to goods planned to last for three or more years.<\/p>\n<p>The market was estimating a 0.5 percent gain for the month, according to <a href=\"https:\/\/www.fxstreet.com\/economic-calendar\/event\/6a8b27d4-ae42-4d33-afeb-c75ff118fc83\">FX Street<\/a>. In August, core capital goods orders had grown by 0.8 percent, which followed a 0.7 percent increase in July.<\/p>\n<p>Shipments of core capital goods fell by 0.5 percent in September, following the 0.2 percent and 0.6 percent increases in August and July, respectively.<\/p>\n<p>In total, new orders for manufactured goods rose by 0.4 percent in September, while shipments increased by 0.3 percent. The uptick in new orders was largely thanks to a 2.1 percent spike in orders for transportation equipment.<\/p>\n<p>The dismal business equipment spending data come as the S&#038;P Global Flash U.S. Manufacturing Purchasing Managers\u2019 Index fell to 49.9 in October, down from 52 in September, according to a\u00a0<a href=\"https:\/\/www.pmi.spglobal.com\/Public\/Home\/PressRelease\/add9c8d7702e49c3ab0c3bbfa1822944\">press release<\/a>\u00a0on Oct. 24.<\/p>\n<p>\u201cNew orders fell back into contraction territory following a marginal expansion in September. The decrease in client demand was solid and the sharpest since May 2020,\u201d the release said.<\/p>\n<p>\u201cAlongside domestic inflationary pressures, total new orders were dampened by challenging economic conditions in key export destinations and dollar strength, as new export orders fell steeply.\u201d<\/p>\n<h2>Manufacturing Slowdown<\/h2>\n<p>The Federal Reserve Bank of Richmond\u2019s Manufacturing Index also registered a decline this month, moving from zero in September to negative 10 in October.<\/p>\n<p>\u201cThe average growth rate of prices paid and prices received both increased again in October, after moderating in September. Expectations for both over the next 12 months also increased slightly from September,\u201d the Fed report <a href=\"https:\/\/www.theepochtimes.com\/stagflation-signs-mount-as-fed-manufacturing-index-shows-activity-slump-inflation-higher_4821871.html\">said<\/a>.<\/p>\n<p>A recent <a href=\"https:\/\/www.theepochtimes.com\/us-manufacturers-still-struggle-with-supply-chain-expect-slower-holiday-season-report_4817238.html\">survey<\/a> by the National Association of Manufacturers, which represents 14,000 companies, found that only 76 percent of manufacturers reported positive feelings about the economic outlook in September, down from 88 percent between January and March.<\/p>\n<p>Over three-fourths of manufacturers felt supply issues were the biggest challenge faced by their business in August. Companies expressed concerns about disruptions to the supply chains as well as certain immigration and tax policies. Two-thirds of members believe a recession is on the horizon.<\/p>\n<p>According to McKinsey, the manufacturing sector employs around 12 million people in the United States and accounts for $2.3 trillion of the country\u2019s gross domestic product. It makes up 60 percent of America\u2019s exports, 35 percent of productivity growth, and 70 percent of business research and development spending.<\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-naveen-athrappully\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/NaveenAthrappully.jpg\" alt=\"Naveen Athrappully\" \/><\/a><\/p>\n<p>Follow<\/p>\n<\/div>\n<p>Naveen Athrappully is a news reporter covering business and world events at The Epoch Times.\n<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Spending on business equipment fell in the month of September amid an overall decline in manufacturing activity, signaling a lack in business confidence across the economy.Core capital goods orders\u2014non-defense capital<\/p>\n","protected":false},"author":1,"featured_media":1695609,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[],"class_list":["post-1714369","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1714369","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1714369"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1714369\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1695609"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1714369"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1714369"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1714369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}