Loss of mo­men­tum

The Star Early Edition - - BUSINESS REPORT | INTERNATIONAL -

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

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