Bookings for capital goods fell in September, signaling a slowdown in U.S. business investment that gives the Federal Reserve more reason to ease policy next week.
Non-military orders for equipment like computers and machinery meant to last at least three years and excluding airplanes dropped 0.6 percent after a 4.8 percent gain in August that was smaller than previously estimated, figures from Commerce Department showed today in Washington. Another report showed sales of new houses hovered near a record low last month.
The reports point to an economy that is struggling to gain speed more than a year into a recovery from the worst recession since the 1930s. Stocks, commodity prices and Treasury securities fell on speculation a renewed program of Fed large- scale asset purchases may not be large enough to spur growth.
Full Story: Orders for U.S. Capital Goods Fall, Signaling Less Investment – Bloomberg