We already know that business investment rose despite a plunge in capital goods shipments last quarter. As such, we wouldn’t read too much into the fall in machinery orders in March. The bigger picture is that as external demand slackens this year on account of recessions in other advanced economies, firms should turn cautious and cut back on capital spending.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.