Durable goods increases, Trump loses on healthcare
In yet another show of optimism from U.S. companies, orders for durable goods increased in February. Durable goods – that is, goods meant to last at least three years – rose 1.7% last month, after rising 2.3% in January. Both of these increases were greater than expected; for February, a median forecast of economists polled by Bloomberg suggested we would see an increase of 1.4%.
This is the sixth straight rise in orders for durable goods (minus transport equipment), suggesting a rising demand that should broaden growth in the world’s largest economy.
Taken in tandem with President Trump’s plans to reduce corporate taxes and minimize business regulations, these results paint a strongly positive picture of the U.S. economy’s future – although, for now, that picture remains potential only.
At the present, however, it is healthcare that has been on the President’s mind. At the end of last week, Republicans were divided over whether to pass the President’s bill repealing Obamacare. Repealing the former President’s safety net for low-income Americans has been at the forefront of Republican consciousness ever since it was introduced. But they remain divided as to what should replace it.
In a bold move on Friday, the President stepped away from negotiations, telling his party that they could pass the bill that day, or he would drop the Obamacare issue altogether. Unfortunately for him, Republicans chose to not vote the way he wanted.
The President’s failure at this first hurdle of his time in office could well lead to questions about his ability to deliver on other policy promises.
The opinions in this article do not reflect those of Dominion Fund Management Limited, and in the instance of any forward-looking statements, these should not be construed as advice.
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