Durable goods, trade data point to pick-up in Q2 growth

Washington

NEW orders for key US-made capital goods unexpectedly fell in June, but a fifth straight monthly increase in shipments suggested that business spending on equipment supported economic growth in the second quarter.

Expectations that growth accelerated in the second quarter were also bolstered by other data on Thursday showing a sharp narrowing in the goods trade deficit in June and increases in both retail and wholesale inventories.

The pick-up in gross domestic product, together with a tightening labour market, would likely keep the Federal Reserve on track to announce a plan to start reducing its US$4.2 trillion portfolio of Treasury bonds and mortgage-backed securities in September and rais…