New orders for U.S.-made capital goods increased by the most in eight months in March, but a drop in shipments suggested business spending on equipment slowed down in the first quarter.
Shipments of core capital goods slipped 0.2 per cent in March after gaining 0.2 per cent in the prior month. Core capital goods shipments are used to calculate equipment spending in the government’s gross domestic product measurement. It also implies some stabilization in manufacturing activity, which has been squeezed by the ebbing stimulus from a $1.5 trillion tax cut package and supply chain disruptions caused by Washington’s trade war with China.
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