June 2015 Economic Indicators
Melanie Garza - Director of Strategy & Growth
Capital Equipment Investments Up
April saw heavy investment in new orders for industrial machinery and material handling equipment, while as a whole, new orders for durable goods fell.
Industrial machinery surged 15.3% in April, posting the largest monthly gain since December 2010. New orders for industrial machinery have fallen steadily since December 2014 from $3.5B to its lowest level in March of 2015 at $2.1B. In April, new orders jumped to $2.7M. Material handling equipment also rose 6.3% in April.
Construction machinery orders dipped 2.5% this past month, although orders are nearly 40% higher than a year ago. Orders for turbines and power transmission also fell 10% in April, but are nearly 15% more than April 2014.
New orders for durable goods fell 0.4% in April following a 2.2% increase in March. Durable goods orders are up 3.4% over the last 12 months.
April Proves Disappointing for Consumers
U.S. Consumer Sentiment fell far below expectations of analysts in May. The University of Michigan’s Consumer Sentiment Index measured just 88.6 in May, surprising analysts who had predicted a 96 reading. In April Consumer Sentiment was recorded at 94.5.
Consumer Sentiment is considered a volatile measure and analysts suggest that a three month average poses a truer picture of actual measurement. The index’s average for 2014 measured at 84.1 and over the last 12 months it has averaged 89.5.
Questions or comments? Please contact Melanie Garza at mgarza@teamCOACT.com.