WASHINGTON – Federal data released Tuesday revealed that February orders for essential U.S. manufacturing equipment surpassed analyst predictions, though revised January numbers paint a more cautious picture of business investment trends in early 2024.
The Commerce Department’s Census Bureau reported that orders for non-defense capital goods, excluding aircraft – a key indicator economists use to gauge business equipment spending – climbed 0.6% in February. This followed a revised 0.4% decline in January.
Financial analysts surveyed by Reuters had anticipated a 0.4% increase for February, following what was initially reported as a 0.1% January gain before the downward revision.
The mixed signals suggest businesses may be exercising more caution with equipment purchases during the opening months of the year, despite February’s stronger-than-expected performance.
The Census Bureau continues working to release delayed economic data following disruptions from last year’s federal government shutdown.
