The U.S. factories are facing a bit of a problem right now. The demand for the business equipment manufactured from the U.S. factories has gone down. The factories have seen a fall in the demand for their equipment once again in January. This is a sign that the demand for the equipment is now starting to cool down after it showed huge demands in the past few quarters.
The results after the month of January saw that this was the first back-to-back drop in demand for USA based equipment since April-May 2016. There is at least 0.4% drop in the demand for machinery and about 0.8% drop in the bookings made for appliances, electrical equipment, and its components.
The durable goods orders fell sharply in January and this was in line with the reduction in the Boeing orders. The main thing that shook the economists is the sharp reduction in the demand for the capital goods. The businessmen are optimistic that the situation will change soon and the demand for U.S. based capital goods will increase.
The other side of the coin showed that there were more orders for motor vehicles and its parts and it rose by 0.1%. The demand for the fabricated metal products saw a boost of 0.5 percent.