Economic Data in U.S. and U.K. Fails to Meet Expectations

Economic Data in U.S. and U.K. Fails to Meet Expectations
Economic Data in U.S. and U.K. Fails to Meet Expectations

The official data released by the U.S. Census Bureau on Wednesday showed that the core U.S. durable goods order slipped all of a sudden in the month of March. The only goods that managed to retain their position were volatile transportation items. The durable goods orders for the last month saw a decline of a seasonally adjusted 1.4 %, even as the economic experts had estimated an increase of 0.5 %. Robust and bulky items like trains, computers or furniture are usually considered as durable goods as most of these are usually designed to endure three years.

The reports from the U.S. Census Bureau also showed a plunge of downwardly revised 1.7 % in the durable goods orders for the month of February, as it gained by 4.3 % against the expected rise of 5.6 %. As a whole, the durable goods orders, including transportation items, saw a decline of seasonally adjusted 5.7 % last month, which was quite dismal considering that the expected fall was suppose to be 2.8 %.

As far as the core capital goods orders is considered, it witnessed an increase of 0.2 %, which is bit lower than the expected gain of 0.3 %. Shipments of core capital goods, which is usually utilized to calculate the economic growth for a quarter, also saw a surge of 0.3 % in the preceding month against the expected gain of 0.8 %.

The U.S. dollar more or less maintained its position against the euro after the economic data was revealed, as the EUR/USD slipped by 0.03 % to trade at 1.2998.

Coming to the U.K., the data released by the Confederation of British Industry signified that the retail sale volumes dropped to -1.0 in April against the 0.0 reading in the last month. Economic experts had predicted that the U.L. retailers index would augment to 7.0 this month.

The recent economic data of Belgium NBB Business Climate released by the National Bank of Belgium on Thursday saw a less-than-expected hike, as it rallied up by -14.7 against the expected -14.0 in the last quarter. The reading for the earlier quarter was 15.0.

Even in Italy, the borrowing costs saw a drop from last month’s auction 1.746 %, as the Italian Treasury sold two-year government bonds worth EUR2.5 billion at 1.167 % average yield.