The manufacturing sector has been weakening considerably in recent months, falling into contraction in many regions as a result of lower energy prices and a stronger dollar. However, despite the contraction, purchasing managers are fairly optimistic about future business conditions. Domestic demand continues to be strong as activity begins to trend upwards as we head into spring. Core Durables Orders provided a positive surprise in January, surging to the highest level in almost 2 years.
Trading Event:
U.S. Core Durable Goods Orders
Today at 12:30 GMT
Investor Notes:
- Core Durable Goods Orders are expected to contract by 0.2% in February after significantly outstripping expectations with 1.8% growth for January.
- S. Final GDP is expected to remain at 1% with no change from the Prelim initial reading of 1%.
- The trade deficit widened in January by 2.2% to $45.7 billion, as exports dropped for the fourth month, reaching an over 5 year low.
- ISM Manufacturing PMI rose more than expected in February to 49.5 from 48.2 for January.
