New orders for key U.S.-made capital goods increased more than expected in August and demand for the prior month was stronger than previously reported, pointing to a steady recovery in manufacturing.
Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, rose 1.8% last month, the Commerce Department said on Friday. Data for July was revised up to show these so-called core capital goods orders increasing 2.5% instead of 1.9% as previously estimated. Economists polled by Reuters had forecast core capital goods orders gaining 0.5% in August.
Overall durable goods orders for August rose 0.4%, falling far short of the 1.5% increase expected.