New government data on U.S. durable goods orders showed a 2.8% drop, a decline that was smaller than the 3.8% decrease economists had anticipated. Durable goods orders track new purchases of long-lasting manufactured products, including transportation equipment, and are widely used to gauge the strength of the industrial sector and overall economic momentum.
Although orders still contracted, the softer decline offered a modest boost for the U.S. dollar, since better-than-expected results are typically viewed as supportive for the currency.
The latest figure also marks an improvement compared with the prior report, which revealed a steep 9.3% plunge. The current slowdown of 2.8% suggests that the sharp contraction seen earlier may be easing.
Because durable goods often include high-value items such as vehicles, aircraft, and major appliances, the report is considered an important indicator of consumer and business confidence. Smaller-than-forecast declines may imply that households and companies remain relatively willing to commit to big-ticket spending, even in a challenging environment.
While the manufacturing sector continues to face headwinds, the data points to a more gradual pace of decline. That shift could indicate that conditions are stabilizing, a potential positive for both the U.S. economy and the dollar moving forward.
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