US Core Capital Goods Orders Surprise With 0.5% Increase

The video discusses the impact of presidential policies on business investment, focusing on December data when Joe Biden was president. It highlights capital goods orders as a proxy for business spending, noting a rise in orders and shipments, which could positively affect GDP. The discussion also covers the influence of tariffs, suggesting that businesses and consumers may have front-loaded orders to avoid potential tariffs, potentially boosting fourth-quarter GDP figures.

What was the percentage increase in capital goods orders, non-defense ex-aircraft, during December when Joe Biden was president?

• 0.2%

• 0.5%

• 1.0%

• 1.5%

Which factor heavily influences the durable goods headline numbers?

• Agricultural products

• Pharmaceuticals

• Consumer electronics

• Boeing and auto company results

What is the significance of capital goods orders, non-defense ex-aircraft, in economic analysis?

• It serves as a proxy for business spending.

• It reflects changes in export levels.

• It indicates government expenditure.

• It is a proxy for consumer spending.

What economic behavior is suggested by the Chicago Booth School study in response to tariff threats?

• Increased savings

• Reduction in imports

• Expansion of credit

• Front-loading of orders

How might consumer behavior in response to tariff threats affect the fourth quarter GDP?

• It could cause a GDP contraction.

• It could result in a stronger GDP.

• It might have no impact on GDP.

• It could lead to a weaker GDP.