Figures released stateside Friday showed that new orders for key U.S.-made capital goods rebounded more than expected in February after two straight monthly declines and shipments surged, a set of circumstances pointing to strong growth in business spending on equipment in the first quarter.
The U.S. Commerce Department said on Friday orders for non-defense capital goods excluding aircraft, jumped 1.8% last month, the biggest gain in five months and followed a downwardly-revised 0.4% decrease in January.
Economists had forecast those orders rising only 0.8% last month after a previously reported 0.3%decline in January. Core capital goods orders increased 7.4% on a year-on-year basis.
Shipments of core capital goods increased 1.4% in February, the biggest advance since December 2016, after an upwardly revised 0.1% gain in January. Core capital goods shipments are used to calculate equipment spending in the government's gross domestic product measurement.
They were previously reported to have slipped 0.1% in January. Business spending on equipment powered ahead in 2017 as companies anticipated a hefty reduction in the corporate income tax rate. The Trump administration slashed that rate to 21% from 35% effective in January.
Related Stories
