US businesses curb capital spending
Source: Financial Times
Strong demand for cars and commercial aeroplanes lifted US durable goods orders last month, but a decline in planned business investment raised worries over the health of the manufacturing sector.
Orders for long-lasting goods rose 4.2 per cent to $230.7bn in July, the commerce department said, following an upwardly revised 1.6 per cent increase in June. Economists had expected more modest 2.5 per cent growth last month.
But the surge was due mainly to transportation demand. Orders excluding that volatile category fell for a second straight month, down 0.4 per cent. Expectations had been for a 0.5 per cent rise. The transport category was lifted by a 54 per cent rise in civilian aircraft orders and a 12.8 per cent increase in motor vehicle demand.
Orders for non-defence capital goods excluding aircraft, a measure of future business spending, dropped for the fourth time in five months, and June’s reading was revised lower. The measure was down 3.4 per cent in July, far steeper than the 0.2 per cent decrease forecast.
Read more: http://liveweb.archive.org/http://www.ft.com/cms/s/0/8ec8559a-edec-11e1-8d72-00144feab49a.html
= new reply since forum marked as read
