U.S. Durable-Goods Orders Mixed

Washington, Dhu-AlHijjah 27, 1437, September 28, 2016, SPA — Orders for U.S. durable goods fell slightly in August on a drop in volatile aircraft orders, but a gauge of business spending plans rose for the third consecutive month, the government reported Wednesday.
The Commerce Department said orders for durable goods—expensive manufactured items expected to last at least three years—were essentially flat in August, posting a drop of $85 million to $226.9 billion. The decline was attributed to a 21.9 percent plunge in orders for commercial aircraft.
U.S. manufacturers have seen demand weaken this year, hurting the overall economy. The strong U.S. dollar has limited exports while lower energy prices have reduced orders for equipment and pipelines. Total orders have fallen 0.6 percent so far this year to $1.8 trillion.
Still, orders for non-military capital goods excluding aircraft—a closely watched measure of business investment plans—advanced 0.6 percent in August, marking its third consecutive monthly gain. The increase in the capital-goods category could be evidence that business spending is recovering since it shrank in the fourth quarter of 2015.
The slump in business investment has worried Federal Reserve (Fed) policymakers because it could depress longer-term economic growth.
–SPA
16:53 LOCAL TIME 13:53 GMT