Observing manufacturing growth ahead of Fed meeting
According to the newly issued data, the Federal Reserve is all set to meet this week ahead of a major GDP estimate because the recovery in the United States manufacturing, although increasing coronavirus cases hampered the gains in the economy. The economic news comes as lawmakers debate temporary stimulus package to investigate on the $2.2 trillion CARES Act passed in the month of March as coronavirus hit.
The business lockdowns caused by the COVID-19 pandemic are anticipated to observe the US economy decrease an unmatched 35 % in the quarter of the April-June when the Commerce Department issues its improved GDP estimate. However, some sectors have started bouncing back, with retail sectors and new home sales recovering from the coronavirus hit. It is also reported that durable goods increasing 7.3 % on demand for transportation equipment.
The major rush from restarting has now run-down and a rebound of domestic COVID-19 cases, along with extremely weak demand, supply chain disturbances, as per the GDP estimate, low oil prices as well as higher levels of uncertainty will measure heavily on business expenditure. Amid the long-term goods data, transportation equipment increased 20 % or $9.2 billion, mainly, among motor vehicles and its parts, where new orders were rose by 85.7 % and shipments gained 83.1 %.