US Core Capital Goods Orders Post Largest Gain in 5 Months; Shipments Surge

US Core Capital Goods Orders Post Largest Gain in 5 Months; Shipments Surge
William Vasquez assembles a paving machine at the Calder Brothers factory in Taylors, S. C., in this handout picture taken on July 18, 2021. Brandon Granger/Calder Brothers Corporation/Handout via Reuters
Reuters
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WASHINGTON—New orders for key U.S.–manufactured capital goods increased by the most in five months in January while shipments of those so-called core goods rebounded, suggesting that business spending on equipment picked up at the start of the first quarter.

Some of the larger-than-expected rise in core capital goods orders reported by the Commerce Department on Monday, which ended two straight monthly declines, likely reflected higher prices last month. It joined solid consumer spending and robust labor market data in painting an upbeat picture of the economy.