WASHINGTON (Reuters) – New orders for key U.S.-manufactured capital goods surged in January, hinting at a rebound in business spending on equipment in the first quarter.
Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, increased 0.8% after a downwardly revised 0.2% advance in December, the Commerce Department’s Census Bureau said on Thursday.
Economists polled by Reuters had forecast these so-called core capital goods orders rising 0.3% after a previously reported 0.4% gain in December.
Shipments of core capital goods slipped 0.3% after increasing 0.3% in December.
Non-defense capital goods orders rebounded 12.9% after dropping 5.3% in December. Shipments of these goods increased rose 3.2% after increasing 3.8% in the prior month.
These shipments go into the calculation of the business spending on equipment component in the gross domestic product report. Business spending on equipment was a drag on economic growth in the fourth quarter.
(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)