Orders for commercial equipment from US manufacturers increased in August, keeping investment in capital goods, which helps drive economic growth, growing strongly for six months.
Orders for core capital goods, excluding aircraft and defense supplies, rose 0.5 per cent in august, compared with 0.3 per cent the previous month, according to data released by the commerce department on Monday.
Overall durable goods orders rose 1.8 per cent in August from a month earlier, reflecting an increase in orders for commercial aircraft.
The median forecast for economists surveyed by Bloomberg was that orders for core capital goods rose 0.4% month-on-month, while total orders for durable goods rose 0.7% month-on-month.
Business spending on capital goods such as electronics, construction machinery and power generation equipment has been a key driver of economic growth. While production efforts have been hampered by capacity restrictions, strong consumer spending has helped boost demand for durable goods against a backdrop of depressed inventories.
Shipments of core capital goods increased by 0.7 per cent, compared with 0.9 per cent the previous month. The data will be used to calculate the official third-quarter gross domestic product (GDP) figures.
Orders for commercial aircraft increased by nearly 78%. However, government data are not always directly comparable on a monthly basis.