Orders for US Business Equipment Match Biggest Drop This Year
- Bookings slid 0.6% in May, weaker than all estimates in survey
- Core capital goods shipments fell by most in three months
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Orders placed with US factories for business equipment unexpectedly declined in May, indicating firms remain cautious about investment amid higher-for-longer borrowing costs and softer demand.
The value of core capital goods orders, a proxy for investment in equipment excluding aircraft and military hardware, decreased 0.6% last month and matched the biggest drop this year, Commerce Department figures showed Thursday. The data aren’t adjusted for inflation.