US core capital goods orders unexpectedly rise in August

WASHINGTON (Reuters) -New orders for key U.S.-manufactured capital goods unexpectedly increased in August, but a decline in shipments of these goods suggested a moderate pace of growth in business spending on equipment this quarter.

Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending, rose 0.6% last month after a downwardly revised 0.8% jump in July, the Commerce Department’s Census Bureau said on Thursday.

Economists polled by Reuters had forecast these so-called core capital goods orders dipping 0.1% after a previously reported 1.0% surge in July. Some of the rise in orders likely reflects higher prices rather than increased volumes as tariffs on imported goods raise costs for manufacturers.

Shipments of core capital goods slipped 0.3% af