Today Thursday (August 25), the Asian plate. The dollar index was quoted at 108.46, down 0.16%. Data on Wednesday showed that new orders for U.S. durable goods increased in July, but the growth rate slowed from June, suggesting that business spending will rebound moderately this quarter.
The Commerce Department report on Wednesday also showed solid growth in shipments of durable goods. While some of the increase was due to businesses spending more because of higher prices, the data was another sign that the economy continued to grow at a sluggish pace and not slipped into recession. Ryan Sweet, senior economist at Moody’s Analytics, said: “The lack of sustained declines in orders suggests that businesses are investing despite tightening financial market conditions, deteriorating sentiment and fears of a recession.
Non-defense durable goods orders excluding aircraft, a closely watched measure of business spending plans, rose 0.4% in July. Data for June was revised up to a 0.9% increase, compared with a 0.7% increase previously. Economists had forecast core durable goods orders rose 0.3% in July. Recent data on retail sales, industrial production and the labor market all underscore the resilience of the economy. Orders are slowing as demand is subdued as the Federal Reserve aggressively tightens monetary policy to fight inflation.
Reminder: The Fed is expected to slow down the pace of interest rate hikes, and whether the dollar can maintain its upward trend will wait for Powell’s speech. The European energy crisis continues to weigh on the euro.