US Capital Goods Orders Stable in July

New orders for key US-made capital goods held steady in July, but accelerating shipments suggest that business investment in equipment could offset an expected slowdown in consumer spending and keep the economy on a solid growth path in the third quarter.

The US Commerce Department said on Wednesday that the reading of orders for non-defense capital goods, excluding aircraft, stabilized after a 1 percent increase in June. This data is closely followed as it gives an indication of companies’ spending plans.

Economists polled by Reuters had expected orders for key capital goods to grow 0.5 percent.