US Capital Goods Orders Rise as Business Investment Beats Expectations in November

The U.S. Commerce Department and the Census Bureau reported that new orders for core capital goods in the US USrose 0.7 percent in November. This performance exceeded the 0.3 percent increase forecast by economists and represents the fifth consecutive monthly rise for this key metric. The data suggests that business investment momentum was sustained through the fourth quarter even as the manufacturing sector, which accounts for 10.1 percent of the economy, faced headwinds from trade policy.

Core capital goods orders, defined as non-defense capital goods excluding aircraft, are a closely watched proxy for business spending plans. While November showed strength, the government downwardly revised October's core capital goods orders to 0.3 percent from the previously reported 0.5 percent. Shipments of these goods, which contribute directly to gross domestic product calculations, rose 0.4 percent in November following a 0.8 percent gain the prior month.