U.S. core capital goods
orders, shipments slip in May
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[June 26, 2017]
WASHINGTON, (Reuters) - New
orders for key U.S.-made capital goods unexpectedly fell
in May and shipments also declined, suggesting a loss of
momentum in the manufacturing sector halfway through the
A Boeing 737 MAX plane is seen during a media tour of
the Boeing 737 MAX at the Boeing plant in Renton,
Washington December 7, 2015. Picture taken December 7,
2015. REUTERS/Matt Mills McKnight - RTX1XRSX
The Commerce Department said on Monday that non-defense capital
goods orders excluding aircraft, a closely watched proxy for
business spending plans, dropped 0.2 percent.
These so-called core capital goods orders were revised up to
show an increase of 0.2 percent for April. They were previously
reported to have risen 0.1 percent.
Shipments of core capital goods fell 0.2 percent last month
after rising 0.1 percent in April. Core capital goods shipments
are used to calculate equipment spending in the government's
gross domestic product measurement.
Economists polled by Reuters had forecast core capital goods
orders rising 0.3 percent in May.
Overall orders for durable goods, items ranging from toasters to
aircraft that are meant to last three years or longer, fell 1.1
percent after declining 0.9 percent in April.
Last month, orders for machinery rose 0.6 percent while
shipments decreased 0.3 percent. Civilian aircraft orders
declined 11.7 percent and bookings for defense aircraft and
parts plummeted 30.8 percent. Orders for motor vehicles and
parts increased 1.2 percent.
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