Jan 15, 2020

A decline in business lending shows the impact of manufacturing's struggles

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Data: Federal Reserve Bank of St. Louis; Chart: Axios Visuals

U.S. commercial and industrial lending fell by $9 billion in December, the largest drop in nearly three years, and the total amount of C&I loans declined to levels last seen in May, data from the St. Louis Fed shows.

Why it matters: The decline in lending to commercial and industrial businesses is the latest sign that the recession in U.S. manufacturing and continued struggles in goods-producing sectors of the economy are spreading. The Commerce Department reported that U.S. business investment had contracted for six straight months as of the third quarter, and had the biggest drop since the end of 2015 in Q3.

Go deeper: Manufacturing should bounce back in 2020

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Commercial property values decline in January, dragged by malls

Data: Green Street Advisors; Chart: Axios Visuals

The latest reading of the Green Street Commercial Property Price Index fell in January for the first time since March 2019. Prices had held steady over the previous three months and have risen just 2.1% in the last 12 months.

Why it matters: The data suggest price increases in commercial real estate have hit a standstill.

The better-than-expected but also terrible durable goods report

Photo: Buena Vista Images/Getty Images

Orders for U.S. durable goods — long-lasting items like sheet metal or motors — rose 2.4% in December, but 90% of that increase was from government defense purchases. Excluding that category, orders fell 2.5%.

Worth noting: New orders for nondefense capital goods excluding aircraft fell 0.9%, the biggest drop in eight months.

Go deeperArrowJan 29, 2020

Fed manufacturing indexes jump in January

Data: FactSet; Chart: Naema Ahmed/Axios

The Richmond Fed's January manufacturing survey recorded its highest reading in almost a year and a half on Tuesday.

Why it matters: The survey is considered a potential leading indicator of overall manufacturing because it is released close to month-end and may offer clues on national manufacturing readings like those from ISM and IHS Markit.

Go deeperArrowJan 29, 2020