US capital goods orders increased slightly in July

New orders for US-manufactured capital goods rose slightly in July, suggesting that spending on business equipment could continue to grow after it recovered in the second quarter.

Orders of non-defense-related capital goods, excluding aircraft, a gauge of corporate spending plans, rose 0.1% last month, after declining 0.4% a month earlier according to revised data, the Defense Department said.

Economists polled by Reuters had expected orders to rise 0.1% in July.

The economy grew at an annualized rate of 2.4% in the second quarter, beating widespread expectations that growth would slow amid record interest rates.

The combination of slowing inflation and a relatively resilient labor market has led many economists to revise their GDP expectations upwards through the end of this year and into 2024.

But economic activity was weighed down by cooling consumer demand and approached stagnation in August, according to S&P Global’s US composite PMI released Wednesday.

Source: Terra

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