US core capital goods orders unexpectedly fall in January
A 6% surge in demand for transportation equipment buoys overall durable goods orders, after civilian and defence aircraft orders soared in previous months
Washington — New orders for US-made capital goods unexpectedly fell in January after three straight months of strong gains, but did little to change views that manufacturing was recovering from a prolonged slump amid rising commodity prices. The Commerce Department said on Monday nondefence capital goods orders excluding aircraft, a closely watched proxy for business spending plans, dropped 0.4% after an upwardly revised 1.1% increase in December. These so-called core capital goods were previously reported to have gained 0.7% in December. There were declines in orders for primary metals and electrical equipment, appliances and components, as well as computers and electronic products. Orders for machinery and fabricated metal products rose. Economists had forecast core capital goods rising 0.5% last month. January’s drop in core capital goods orders probably reflected caution among businesses as they await details of the Trump administration’s proposed tax reform. US financial market...
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