CIBC Capital Markets: Softer US domestic demand holding business investment
|CIBC Capital Markets analysis team suggests that any bump in investment from tax reform is long gone for the US economy as indicated by the failure in bounce of core capital goods orders.
Key Quotes
“Capital goods imports have failed to make material gains recently, reinforcing the notion that softer domestic demand is holding business investment back. Machinery equipment orders could have risen in line with mining production, suggesting that ex-transportation orders were 0.1% higher on the month.”
“Robust aircraft orders could have supported a 0.8% advance in headline durable orders.”
“Forecast Implications - A deterioration in global business conditions has weighed on producer confidence in the US, & in combination with slower domestic demand, should keep a lid on investment through 2019.”
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