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The Commerce Department said on Wednesday
non-defense capital goods orders excluding aircraft, a closely
watched proxy for business spending plans, dropped 1.4 percent
last month after a revised 0.1 percent dip in January.
The so-called core capital goods orders last rose in August.
Business spending on capital goods has been hurt by a strong
dollar, which has cut into overseas profits of multinational
companies. Lower crude prices also have acted as a drag, forcing
oil firms to either delay or cut back on investment projects.
That has helped restrain economic growth early in the first
quarter.
Economists polled by Reuters had forecast core capital goods
orders gaining 0.3 percent last month after a previously
reported 0.5 percent rise in January.
Shipments of core capital goods, which are used to calculate
equipment spending in the government's gross domestic product
measurement, rose 0.2 percent last month after slipping by a
revised 0.4 percent in January.
Shipments in January were previously reported to have gained 0.1
percent. That downward revision could see economists trim their
first-quarter GDP growth estimates, which currently range
between a 1.2 percent and 2 percent annual pace.
With core capital goods orders falling, overall orders for
durable goods - items ranging from toasters to aircraft that are
meant to last three years or more - fell 1.4 percent last month.
Durable goods orders were also hampered by a 3.5 percent plunge
in orders for transportation equipment. Durable goods orders
increased 2 percent in January.
(Reporting by Lucia Mutikani; Editing by Paul Simao) ((Lucia.Mutikani@thomsonreuters.com;
1 202 898 8315; Reuters Messaging:
lucia.mutikani.thomsonreuters.com@reuters.net)
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