Orders for U.S. Capital Goods Climb by Most Since June 2014
Source: Bloomberg
February 25, 2016 — 8:30 AM EST
Updated on February 25, 2016 — 9:12 AM EST
Orders for U.S. capital goods rebounded in January by the most since June 2014, representing a pause in manufacturing’s downturn.
Bookings for non-military equipment excluding commercial aircraft jumped 3.9 percent, more than forecast, after a 3.7 percent decrease in December that was smaller than previously reported, data from the Commerce Department showed Thursday. Orders for all durable goods -- items meant to last at least three years -- rose 4.9 percent, the most since March.
The increase was broad-based -- from cars and computers to machines and metals -- and a sign that domestic demand is a source of support for manufacturers battered by lukewarm overseas markets. At the same time, the outlook for capital spending among miners, farmers and well drillers has dimmed because of plunging commodity prices.
“It’s good in the sense that we’re not getting further deterioration,” said Brett Ryan, U.S. economist at Deutsche Bank Securities Inc. in New York. “Exports are continuing to get hit by the dollar and you have slowing global growth, cap-ex is probably going to be a bit challenged for the next few quarters.”
Read more: http://www.bloomberg.com/news/articles/2016-02-25/orders-for-u-s-capital-goods-increase-by-most-since-june-2014