US factory orders dip in June as tight policy pressures demand

03.07.24

Decline in US factory orders in June is another sign that tight monetary policy is working its way.
Expensive credit makes purchases less affordable, depressing consumers.
At the same time businesses contract their output to meet decreasing demand.
Fed does not want make harm to manufacturing which is an important part of the economy (around 10% of GDP) and as such will look for opportunity to cut rates as soon as data shows inflation is under control.