Global| Jun 24 2002Capital Spending on the Mend
by:Tom Moeller
|in:Economy in Brief
Summary
Capital goods orders less the volatile aircraft sector have risen 8.7% from the monthly low reached last September. An improved economy and higher corporate profits account for the gain. Despite the gain, the capital goods sector is [...]
Capital goods orders less the volatile aircraft sector have risen 8.7% from the monthly low reached last September. An improved economy and higher corporate profits account for the gain.
Despite the gain, the capital goods sector is hardly strong. At 5.5% (AR), the three-month growth rate is roughly half the rates of the mid-to-late 1990s.
Growth in computers & electronics is up, but 7.2% growth is well below the supercharged 1990s.
Orders for electrical equipment have recovered more than have computer orders but machinery orders have only just hit bottom.
The sub-series listed below contain some defense components.
| Nondefense Capital Goods Orders (SA) | April | March | Y/Y | 2001 | 2000 | 1999 |
|---|---|---|---|---|---|---|
| Total less Aircraft | $53.1B | $50.9B | -6.1% | -14.2% | 5.9% | 4.5% |
| Electrical Equipment & Appliances | 9.5B | 8.7B | -4.4% | -7.7% | 3.8% | 4.5% |
| Computers & Electronics | 26.8B | 26.0B | -2.9% | -24.3% | 8.2% | 8.2% |
| Machinery | 22.2B | 21.5B | -3.5% | -7.1% | 8.0% | 0.2% |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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