Orders for non-defense capital goods
excluding aircraft, a closely watched proxy for business spending plans, increased 0.4 percent last month, the government said, driven by strong demand for electrical equipment, appliances and components.
Data for June was revised down to show the core capital goods
orders advancing 0.9 per cent instead of 1.5 per cent as previously reported.
The impact of these policies has been quite widespread during the last two to three decades as reduction in the tariffs on engineering and capital goods
, and a free trade agreement with China, have encouraged imports of these products at the expense of investment in local production.
In the EU28, industrial producer prices rose by 17.1% in the energy sector, by 3.0% for intermediate goods, by 1.5% for durable consumer goods, by 1.3% for capital goods
and by 0.3% for non-durable consumer goods.
More than 98.2% of goods imported from China in 2017 were industrial goods, of which 47.5% were capital goods
, 36.04% were intermediate goods and 15.5% were consumer goods.
Foreign Trade of Capital Goods
in the United States: A Persistent Deterioration
The factory output, measured by movement in Index of Industrial Production ( IIP), had slipped to an 8- month low of (- ) 2.49 in July on account of declining output in capital goods
The increase of 1.1% in industrial production in the euro area in April, compared with March, is due to the production of durable consumer goods rising by 2.3%, capital goods
by 1.9%, non-durable consumer goods by 1.6%, intermediate goods by 0.4% and energy by 0.3%.
"The continuing resurgence of imports is a healthy indication of robust investment demand as it continues to be driven by intermediate and capital goods
. The anticipated recovery of the global economy, and brisk election spending will continue to drive imports to double-digit growth," said Economic Planning Secretary Arsenio M.
Growth in imports has remained buoyant for a year now, mainly due to robust gains in capital goods
imports, it added.
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