US Core Capital Goods Orders Rise 0.6%, January Revision Signals Slowing Business Spending
New orders for key US-made capital goods rose more strongly than expected in February, but a sharp downward revision to the January data suggests business spending on equipment may have slowed at the start of the first quarter. Core capital goods orders—non-defense orders excluding aircraft, which are a proxy for corporate investment spending—rose 0.6% in February, after January was revised down 0.4%.
Economists polled by Reuters had previously forecast a 0.4% increase in February, after January's figure was initially reported as a 0.1% increase. This revision paints a more moderate picture of investment momentum than initially indicated.
The US Census Bureau is still playing catch-up with its data release due to delays caused by last year's government shutdown, so the market remains wary of potential further revisions. For market participants, the February figures signal that investment activity has not stalled, but the January revision tempered optimism that corporate capital spending will return to consistent strength in the current quarter.
Source: Newsmaker.id
