US core capital goods orders post biggest drop in a year

Washington

NEW orders for key US-made capital goods unexpectedly fell in October after three straight months of hefty gains, but a sustained increase in shipments points to strong momentum in the economy as the year winds down.

The Commerce Department said on Wednesday that orders for non-defence capital goods (excluding aircraft) - a closely-watched proxy for business spending plans - declined 0.5 per cent last month. This was the biggest drop since September 2016, and followed an upwardly revised 2.1 per cent increase in September.