US Business Equipment Orders Increase by the Most in Five Months
Orders placed with US factories for business equipment increased in January by the most in five months, suggesting businesses continue to make longer-term capital investments despite high borrowing costs and lingering economic uncertainty.
The value of core capital goods orders, a proxy for investment in equipment that excludes aircraft and military hardware, increased 0.8% last month after a downwardly revised 0.3% decline in December, Commerce Department figures showed Monday. The data aren’t adjusted for inflation.
The median forecast in a Bloomberg survey called for no change in core capital goods bookings.
Core capital goods shipments, a figure that is used to help calculate equipment investment in the government’s gross domestic product report, jumped 1.1%.
With a tight labor market keeping upward pressure on wages, many companies are continuing to seek ways to make their workers more productive. Furthermore, if businesses believe a potential downturn will be short and mild, they may be more inclined to continue with capital investment plans. Read More..
