|
Companies reduced demand in September industrial machinery, electrical equipment and other core capital goods that signal investment, the government said last week. And August's figures those orders were revised down. Economists pay particular attention to core capital goods, which exclude aircraft and defense-related goods, because they reflect business confidence. Analysts were also encouraged by a survey of companies in the Chicago region, released Thursday. It found that the companies expanded at their fastest pace in more than two years in October. New orders jumped, and hiring also rose. Still, economists don't expect manufacturing to boost economic growth in the coming months. Growth likely fell to a weak annual rate between 1.5 percent and 2 percent in the July-September quarter from a 2.5 percent pace in the April-June period. Most economists expect similarly slow growth in the final three months of the year.
[Associated
Press;
Copyright 2013 The Associated
Press. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.