US core capital goods orders unexpectedly fall in June
While some of the tariff-related spending to avoid even higher goods prices has persisted, uncertainty over where tariff levels will eventually settle has prompted some businesses to hold off capital expenditures. A survey from S&P Global on Thursday showed its flash manufacturing PMI contracted in July for the first time since December. S&P Global noted that "any protectionist benefits of import tariffs were often outweighed by concerns over higher prices and rising costs."
The Atlanta Fed is forecasting economic growth will rebound at a 2.4% annualized rate in the second quarter, largely reflecting a reversal in import flows, which contributed to GDP contracting at a 0.5% pace in the first quarter.
(Reporting by Lucia Mutikani; Editing by Paul Simao)
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