New orders for U.S. manufactured capital goods rebounded in October, driven by rising demand for machinery and other equipment, the latest indication of an acceleration in economic growth early in the fourth quarter, Reuters reports.
The brightening economic outlook received a further boost from other data today showing a jump in consumer sentiment this month following the election of Donald Trump as president. Consumers embraced the business mogul’s victory, which they viewed as positive for their personal finances and the economy’s prospects.
While the number of Americans filing for unemployment benefits rose from a 43-year low last week, the trend in jobless claims remained consistent with a tightening labor market.
The data reinforced expectations the Fed would hike interest rates at its December meeting, and minutes of the bank’s November policy meeting showed rate setters appeared confident that a rise would come “relatively soon.”
“Everything seems to be moving in the right direction in the economy,” says Joel Naroff, chief economist at Naroff Economic Advisers in Holland, Pennsylvania. “The weak links are recovering, and the strengths are staying strong. The Fed is not going to continue doing nothing.”
