Apr 24 2015

Rate Range Projection by Bank 

Next week 118.50- 120.00 

Next 3 months 115.00 - 127.00

 

Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, declined 0.5 percent last month after a revised 2.2 percent drop in February, which was the biggest decline since July 2013.This is consistent with a sluggish rebound in growth. It's shedding more doubt on the Fed's willingness to raise rates mid-year, said Gennadiy Goldberg, an economist at TD Securities in New York.The so-called core capital goods orders were previously reported to have declined 1.1 percent in February. Economists had forecast these orders gaining 0.3 percent last month.The weakness mirrors other manufacturing indicators such as industrial production and various regional factory surveys. The Fed has kept overnight interest rates near zero since December 2008, but a number of officials have said an increase will likely be considered at its June policy-setting meeting. Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, declined 0.5 percent last month after a revised 2.2 percent drop in February, which was the biggest decline since July 2013.The so-called core capital goods orders were previously reported to have declined 1.1 percent in February. Economists had forecast these orders gaining 0.3 percent last month.

 

The report from the Commerce Department on Friday came on the heels of lukewarm data on retail sales, employment and housing starts that have hinted at insufficient growth momentum that could prompt the Federal Reserve to delay raising interest rates until later this year.