US business equipment orders rebound

Orders placed with US factories for business equipment rebounded in October, suggesting capital spending plans are holding up in the face of higher borrowing costs and broader economic uncertainty.

The value of core capital goods orders, a proxy for investment in equipment that excludes aircraft and military hardware, rose 0.7 per cent last month after a downwardly revised 0.8 per cent decline in September, Commerce Department figures showed Wednesday. The data aren’t adjusted for inflation.

Core capital goods shipments, a figure that is used to help calculate equipment investment in the government’s gross domestic product report, jumped 1.3%, the most since the start of the year. That suggests a solid start to fourth-quarter GDP.