However, in the middle panel, we see that this resilience did not hold for export orders, which have declined more than total orders, since the war and the Covid wave in China are already affecting the external sector. The right panel shows the expectations component, which fell abruptly for manufacturing in particular but has remained in expansionary territory.
Should the Federal Reserve conclude that the maintenance of price stability is in jeopardy, I am confident that it will act appropriately. Conclusion To conclude, a change in the tone of international financial markets that required a substantial adjustment of the U.S. current account would obviously have important implications for spending and economic activity, both here and abroad.