[WASHINGTON] New orders for US-made capital goods increased more than expected in January, while shipments surged, suggesting an acceleration in business spending on equipment early in the first quarter, though inflation accounted for some of the rise.

Orders for non-defence capital goods excluding aircraft, a closely watched proxy for business spending plans, jumped 0.9 per cent last month last month, the Commerce Department said on Friday.

These so-called core capital goods orders gained 0.4 per cent in December. Economists polled by Reuters had forecast core capital goods orders rising 0.5 per cent.

Shipments of core capital goods accelerated 1.9 per cent last month after increasing 1.6 per cent in December.

Core capital goods shipments are used to calculate equipment spending in the gross domestic product measurement.

Business spending on equipment rebounded in the fourth quarter after being weighed down by motor vehicle shortages in the July-September quarter. A global shortage of semiconductors is hampering motor vehicle production.

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Economists saw limited impact on equipment spending on energy production from the surge in oil prices after Russia invaded Ukraine. Brent crude prices on Thursday rose above US$100 per barrel for the first time since 2014 and retreated to about US$98.7 a barrel on Friday.

According to Goldman Sachs, shale investment had become less sensitive to price increases.

Orders for durable goods, items ranging from toasters to aircraft that are meant to last three years or more, advanced 1.6 per cent last month after rising 1.2 per cent in December. They were boosted by a 3.4 per cent increase orders for transportation equipment, which followed a 1.7 per cent rise in December.

Motor vehicle orders fell 0.4 per cent after increasing 1.8 per cent in December. Orders for the volatile civilian aircraft category increased 15.6 per cent after rising 23.9 per cent in December. Boeing reported on its website that it had received 77 aircraft orders last month compared to 80 in December.REUTERS