Data shows U.S. economy strengthening on eve of Trump presidency

New orders for U.S. manufactured capital goods rebounded in October, driven by rising demand for machinery and a range of other equipment, the latest indication of an acceleration in economic growth early in the fourth quarter.

The brightening economic outlook received a further boost from other data on Wednesday showing a jump in consumer sentiment this month following the election of Donald Trump as the next 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 labour market.

The data reinforced expectations the Federal Reserve 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”. Read more…