The US economy received another positive boost on Tuesday after the latest factory orders data showed that the world’s biggest economy is seeing its manufacturing sector stabilise.
According to the Washington based Commerce Department new orders for US made factory goods increased for a second consecutive month in May. Orders grew by 2.1% beating economist expectations of a rise to 2% and beating April’s figure of 1.3%.
Manufacturing had been slowing down in recent months as deep government spending cuts and tax rises began to affect manufacturers. The sector was also not helped by a slowdown in global demand with China and Europe being areas of concern.
Tuesday’s data combined with Monday’s ISM manufacturing data shows that the fall in momentum for the US recovery was coming to an end. Sales of vehicles, increasing residential construction and a boom in the nation’s energy sector are all helping to negate the impacts of the weakness found in export markets.
“If you look at Manufacturing in general it’s been one of the biggest expansionary tracks we’ve seen.”Drew Marus, deputy US chief economist at UBS Securities said before the report’s release. “The US seems like it is doing much better than the rest of the world.”
The Commerce department also said that orders for durable goods, manufactured goods expected to last for more than three years or more, rose by 3.7% instead of the 3.6% increase reported last week.
The next big mover for the ‘Greenback’ will come on Friday with the release of the latest unemployment data.
US Dollar (USD) Current Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6601
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7691
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0929
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 100.3625
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0563
The Pound Sterling/ US Dollar Exchange Rate is currently in the region of: 1.5147
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3001
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9149
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9467
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.7753
(Correct as of 15:45 pm GMT)
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