Factory demand in the U.S. becoming sluggish as interest rates climb

InflationMoney Matters
Written By Jennifer Joslyn

🇺🇸 Factory demand in the U.S. becoming sluggish as interest rates climb.

As interest rates rise, the cost of borrowing for businesses increases. This can lead to higher borrowing costs for factories, which can lead to decreased investment in new equipment, technology, and expansion. This can ultimately lead to a slowdown in factory demand as businesses may hold off on investing until interest rates decrease. As interest rates rise, the U.S. dollar tends to strengthen, making U.S. exports more expensive and less competitive in the global market. This can decrease demand for U.S. goods and can lead to decreased factory demand.

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Jennifer Joslyn
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