New orders for U.S.-made capital goods unexpectedly fell for a second straight month in October, a sign that the economy lost some momentum early in the fourth quarter.
The Commerce Department said on Wednesday non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, declined 1.3 percent last month. That followed a 1.3 percent fall in September.
The drop in the so-called core capital goods orders suggested that a brisk pace of spending on equipment set in the third quarter ebbed early in the fourth quarter.
A sturdy pace of business spending on equipment helped the economy grow at a 3.9 percent annual pace in the third quarter.
Economists polled by Reuters had expected core capital goods orders to increase 1.0 percent last month.