Manufacturing stabilising as durable orders rise in May

Washington

A GAUGE of US business investment spending plans rose in May in a tentative sign of stabilisation in the manufacturing sector, which has been weak since the late summer of 2014.

But the lingering effects of lower oil prices and a strong dollar will continue to constrain factory activity for a while, economists say. Other data on Tuesday showed the manufacturing sector moderated in June for a third month in a row, slipping to its slowest pace since late 2013, while new-home sales increased to a more than seven-year high in May.