U.S. core capital goods orders accelerate in August; shipments rise

[mahatmakanejeeves]

Source: Reuters

September 27, 2022
10:38 AM EDT
Last Updated 10 min ago

U.S. core capital goods orders accelerate in August; shipments rise

By Lucia Mutikani

Summary
-- Core capital goods orders increase 1.3% in August
-- Core capital goods shipments rise 0.3%
-- Durable goods orders fall 0.2% on transportation drag

WASHINGTON, Sept 27 (Reuters) - New orders for U.S.-manufactured capital goods increased more than expected in August, suggesting that businesses remained keen to spend on equipment despite higher interest rates, which could keep the economy on a moderate growth path.

Some of the surge in orders reported by the Commerce Department on Tuesday, however, reflected higher prices. The data suggested that business spending on equipment probably rebounded in the third quarter, further dispelling fears that the economy was in recession.

Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, surged 1.3% last month. Data for July was revised higher to show these so-called core capital goods orders gaining 0.7% instead of 0.3% as previously reported. The data is not adjusted for inflation. ... Economists polled by Reuters had forecast core capital goods orders rising 0.2%.

There were increases in orders for machinery, primary metals, computers and electronic products as well as electrical equipment, appliances and components. But orders for fabricated metal products fell.

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Read more: https://www.reuters.com/markets/us/us-core-capital-goods-orders-surge-august-2022-09-27/

[PSPS]

1. Gee. So much for the impending doom of the impossible low-unemployment recession.