Investing.com - U.S. factory orders rose, albeit less than expected in January, indicating that American manufacturers are holding up despite signs of a global economic slowdown.
In a report, the U.S. Census Bureau said factory orders increased by a seasonally adjusted 0.1% in January, compared to expectations for a gain of 0.3%.
January data on durable goods orders released last week showed its third-consecutive increase, while new orders for nondefense capital goods excluding aircraft, an underlying measure of business investment, had showed its strongest growth rate since last summer.
And the meager gain on factory orders provides some economic relief given signs that manufacturing in the U.S. is benefitting from solid domestic demand despite worries of a slowdown in the global economy.
Tuesday’s data comes as the Federal Reserve kicks off its two-day policy meeting.
While no changes to policy are expected, attention will center on updated economic forecasts, including the “dot plot” that details policymakers’ projections for interest rates.
Expectations are leaning towards a reduction of the Fed’s prior projection of two rates hikes this year to just one, while some analysts believe that the central bank could align its outlook to current market expectations by ruling out an increase all together this year.