Surprise drop in US factory orders as demand for computers weakens
Weaker demand for computers and electronics products in the US could lower expectations for a fourth-quarter rise in business spending
Washington — New orders for US manufactured capital goods fell unexpectedly in September amid weak demand for computers and electronic products, which could temper expectations for business spending to rise in the fourth quarter. Other figures issued on Thursday showed a drop in the number of Americans applying for unemployment benefits last week, pointing to sustained labour market strength and firming economic growth. The Commerce Department said nondefence capital goods orders excluding aircraft, a closely watched proxy for business spending plans, fell 1.2% after three months running of strong gains. These core capital goods orders rose an upwardly revised 1.2% in August. Economists had forecast core capital goods orders rising 0.3% last month after a previously reported 0.9% rise in August. "This is a bit of a discouraging handoff to the fourth quarter. There is a reluctance to boost capex (capital expenditure) meaningfully," said Jennifer Lee, a senior economist at BMO Capital...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.