Tepid US Equipment Shipments Suggest Soft Start to Third Quarter
- Core capital goods shipments posted back-to-back declines
- Weaker figures follow strong data in the second quarter
A plane on the production floor at a factory in Mobile, Alabama.
Photographer: Luke Sharrett/BloombergThis article is for subscribers only.
Consecutive monthly declines in shipments of core capital goods suggest US business investment was meager at start of the third quarter.
The value of shipped capital equipment excluding aircraft and military hardware — an input into the government’s calculations of gross domestic product — fell 0.2% in July, the biggest drop in four months. The Commerce Department’s latest figures, which aren’t adjusted for changes in prices, showed an even bigger drop in total capital goods shipments.