US Capital Goods Orders Fall in October

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.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza