Loss of momentum

NEW ORDERS for key US-made capital goods unexpectedly fell in May and shipments also declined, suggesting a loss of momentum in the manufacturing sector halfway through the second quarter. The commerce department yesterday said that nondefence capital goods orders excluding aircraft, a closely watched proxy for business spending plans, dropped 0.2 percent, the largest decline since December. These so-called core capital goods orders were revised up to show an increase of 0.2 percent for April. Shipments of core capital goods fell 0.2 percent last month after rising 0.1 percent in April. Core capital goods shipments are used to calculate equipment spending in the government’s gross domestic product measurement. – Reuters