Stock market analytics, financial forecasts

Get the latest economic news from ForexMart, including updates on the financial market, central banks' policy announcements, financial indicators, and other relevant news which can have an impact on the industry.

Disclaimer:  Information provided here to retail and professional clients does not contain and should not be construed as containing investment advice or an investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance.

US Factory Growth Hit Lower in March


April, 03 2018
watermark Economic news

The factory activity in the United States had slowed down for the month of March alongside the downturn in new orders. While growth in manufacturing industry continued to be supported by strong global and domestic economies. Further data showed on Monday the marginal increase in construction expenditure for February. The figures coincided with the economists’ forecast that the economic growth will slacken in January to March. Economic growth in the first quarter of 2018 appears to be weak due to seasonal quirk.


According to the Institute for Supply Management (ISM), the national factory activity index declined to 59.3 in the previous month versus 60.8 in February. If the reading in the ISM index is above 50, it indicates expansion in manufacturing which accounts more or less than 12 percent of the American economy. While the survey's production sub-index drop to 1.0 point from the reading of 61.0 last month. The estimate of new orders fell to 61.9 in March against 64.2 in February. The gauge of factory labor reduced by 2.4 points to 57.3 in the previous month.


There are 17 sectors that reported growth in March, which involves computer and electronic products, fabricated metal products and machinery and chemical products. On the other hand, the Apparel, leather and allied items showed a downswing. Machinery manufacturers told that imposed tariffs on steel and aluminum imports led to panic buying, pushing short-term costs higher, and further caused scarcity for non-contractual clients. The tariffs set by US President Donald Trump is intended to protect domestic industries from the so-called unfair competition against other countries.


The report slightly influenced US financial markets. As shown in a separate report, construction spending gained 0.1 percent in February following a steady stance in January. The Reuters poll indicates that economist projected that construction spending grew by 0.5 percent in February and expected to increase by 3.0 percent on an annual basis. February’s marginal increase in construction spending presents a growth estimate for the GDP in Q1, which is predicted to be lower than the 2 percent annualized rate.


The costs on private construction projects were up by 0.7 percent on the back of its 0.7 percent decline in January. While nonresidential structures expenditures had rebounded by 1.5 percent in February after it plummeted to 1.7 percent in the past month.


Feedback

ForexMart is authorized and regulated in various jurisdictions.

(Reg No.23071, IBC 2015) with a registered office at Shamrock Lodge, Murray Road, Kingstown, Saint Vincent and the Grenadines

Restricted Regions: the United States of America, North Korea, Sudan, Syria and some other regions.


© 2015-2024 Tradomart SV Ltd.
Top Top
Risk Warning:
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.