New orders for key U.S.-made capital goods rose modestly in July while shipments fell by the most in nearly three years, pointing to continued weakness in business investment and a slowdown in economic growth early in the third quarter.
The Durable Goods Orders, released by the U.S. Census Bureau, registered 2.1% higher during July, compared to consensus estimates of 1.1%, and compared to a June reading of 1.9%.
The figures measure the cost of orders received by manufacturers for durable goods, which means goods planned to last for three years or more, such as motor vehicles and appliances. As those durable products often involve large investments they are sensitive to the US economic situation. The final figure shows the state of US production activity. Generally speaking, a high reading is bullish for the U.S. dollar.
