Economic Rebounds: Manufacturing Sector Showcases Improvement in First Quarter, Boosting US and Mexican Economies

US manufacturing sector’s outlook brightens

The manufacturing sector, which accounts for 10.3% of the US economy, showed signs of improvement in the first quarter as orders for durable goods increased more than expected in February. Despite rising interest rates impacting demand for goods, this positive outlook is driven by expectations of rate cuts by the Federal Reserve later this year. The health of the manufacturing sector is crucial for Mexico as it plays a significant role in integrating the Mexican economy with the US economy.

According to the Census Bureau of the Department of Commerce, orders for durable goods such as transportation equipment and machinery rose by 1.4% in February, following a revised downward data for January which showed a 6.9% drop in orders. Economists had anticipated a 1.1% rise in durable goods orders. Additionally, orders for non-defense capital goods excluding aircraft, a key indicator of company spending plans, increased by 0.7% in February after a 0.4% decrease the previous month.

In terms of consumer confidence, a survey by the Conference Board revealed that confidence remained steady in March. Concerns about a possible recession took a backseat to worries about the political environment leading up to the presidential election in November. The consumer confidence index for March was 104.7, almost the same as February’s revised figure of 104.8

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