Us Core Capital Goods Orders Beat Expectations in January
New orders for key U.S.-manufactured capital goods surged in January, hinting at a rebound in business spending on equipment in the first quarter. Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, increased 0.8% after a downwardly revised 0.2% advance in December. Shipments of core capital goods slipped 0.3% after increasing 0.3% in December.
- The sudden acceleration in capital goods orders could signal a sharp pickup in business investment, potentially boosting economic growth and challenging the Fed's hawkish stance on interest rates.
- What implications will this rebound have for the broader economy, particularly for industries that rely heavily on equipment purchases, such as manufacturing and construction?