Orders for U.S. durable goods improved less than forecast in March as demand for capital equipment remained weak, showing that a diminished growth outlook is impeding investment.
Figures released Tuesday by the U.S. Commerce Department show bookings for items meant to last at least three years rose 0.8% after a revised 3.1% slump a month earlier. The median forecast in an economist survey called for a 1.9% advance. Orders for business equipment were little changed last month.
Businesses continue to battle soft global sales and middling U.S. consumer spending, which make it difficult to justify expanding plans for capital outlays. The prospects for a pickup will be limited until demand accelerates and companies feel more confident that their investments will pay off.
Projections in the survey for all durable goods orders ranged from a 0.6% drop to a 3.7% increase. The February decline was revised from a previously reported 3% drop.
Bookings for non-defense capital goods excluding aircraft -- a proxy for business investment -- were projected to advance 0.6%. February orders for those goods were revised down to a 2.7% retreat from a previously reported 2.5% decline.
