Stagnant U.S. Equipment Orders Signal Pause in Investment

A second straight month of stagnant orders for business equipment in April indicates investment in capital goods could slow in the second quarter, Commerce Department data showed Friday.

The figures on orders and shipments may raise concern that a pickup in first-quarter business investment was temporary. The data may also indicate that companies may be growing reluctant to move forward on expansion plans until lawmakers in Washington come to an agreement on tax legislation and infrastructure spending. Orders dropped in April for machinery, fabricated metals and electrical equipment. A separate release from the Commerce Department on gross domestic product showed business investment in equipment rose an annualized 7.2 percent in the first quarter, the most since the third quarter 2015.