Numbers on factory orders and durable goods show economy remains in not-too-strong, not-too-weak Goldilocks track
Business investment remained weak according to this mornings report on durable goods. Orders for non-defense capital goods excluding aircraft--a measure of business investment--remained weak in February, falling 0.1% for the month. However, shipments of those...Extend your timeline for this rally a little on the surge in buybacks funded by tax cuts
Share buybacks surged to hit record levels in the fourth quarter of 2017. U.S. companies announced $178 billion in buybacks in the quarter. That’s the largest total announcement of share buybacks in a single quarter on record, according to Birinyi Associations. Wall Street analysts are projecting that 2018 as a whole will set a record for buybacks in a year.
Needed: More confidence in business investment
If the Trump administration is going to get the economy growing at something better than the 1.6% growth in GDP recorded in 2016, it’s going to need businesses to invest in new plants and new equipment–the stuff needed to make more stuff. Which is why the January report on durable goods order released today by the Department of Commerce is a little worrying.
Manufacturing keeps driving the U.S. economy
This morning the Commerce Department reported that orders for manufactured goods climbed by 3% in March. That’s the fifth consecutive monthly increase and a sharp pickup from February’s 0.7%