Orders for U.S. Capital Goods Fall More Than Prior Estimate

Demand for U.S. capital goods such as machinery and communications gear dropped more in July than previously estimated, a sign manufacturing will contribute less to the economic expansion.

The 4 percent decrease in bookings for non-military capital goods excluding aircraft exceeded the 3.4 percent drop estimated last week in the durable goods report, the Commerce Department said today in Washington. It remained the biggest decline since November. A 54 percent surge in aircraft demand, which is often volatile, pushed total factory bookings up by 2.8 percent last month, the biggest gain in a year.