Only minimal growth in new business in the US industry
The new business of the US industry grew only minimally in May. Orders for durable goods such as aircraft and construction machinery rose by 0.1 percent compared to the previous month, as the Trade Ministry announced on Thursday. Economists surveyed by Reuters had even expected a decrease of 0.1 percent, after a revised increase of 0.2 percent in April.
Excluding the transportation sector, orders decreased by 0.1 percent in May. Experts had expected a rise of 0.2 percent. The US Federal Reserve (Fed) is trying to curb inflation and cool down the labor market with a tight monetary policy. However, a rate cut may still be waiting in the wings due to persistent price pressures. Many experts believe it will not be until at least September before this happens. Currently, the Fed's monetary policy rate is in the range of 5.25 percent to 5.50 percent.
In the context of the US economy, the tight monetary policy implemented by the Fed might impact the growth of new US industry businesses in the near future. Despite the minimal growth in May, the US industry is still exploring new business opportunities.
