U.S. core capital goods orders, shipments fall in May
The Commerce Department said on Wednesday that orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, slipped 0.2 percent last month.
Data for April was revised to show the so-called core capital goods orders surging 2.3 percent instead of the previously reported 1.0 percent rise.
Economists polled by Reuters had forecast core capital goods orders gaining 0.5 percent last month. Core capital goods orders increased 6.8 percent on a year-on-year basis.
Shipments of core capital goods dipped 0.1 percent last month after an upwardly revised 1.0 percent increase in April. Core capital goods shipments are used to calculate equipment spending in the government’s gross domestic product measurement.
They were previously reported to have gained 0.9 percent in April. The drop core capital goods shipments last month, if sustained, suggests a modest contribution to second-quarter GDP growth from business spending on equipment. ■