New orders for key U.S.-made capital goods dropped by the most in eight months in December and shipments were weak, suggesting business investment contracted further in the fourth quarter and was a drag on economic growth.
The newer orders for the key capital goods made in the United States dropped by the highest of the levels in the last eight months in the month of December and the shipments turned out to be weaker than ever and suggested that the investment in business had contracted further in the last quarter and was a major drag on the growth of the economic. The Department of Commerce had said this Tuesday that the orders for the capital goods for non-defense goods excluding that of aircraft had been a proxy which was watched closely had fallen by 0.9% in the last month with the demand for primary metals, electrical equipment and machinery going down in addition to that of components and appliances
This was the single largest decrease since the month of April. As the Data for the month of November had been revised to a level which was lower for showing the so-called capital goods orders showing a minute gain of 0.1% instead of the gains which had been reported previously at 0.2%.
The core goods had risen by 0.8% in the month of December in the year-over-year basis in the month of December.
The shipments of the goods had seen a decrease by 0.4% in the last month. These shipments are used for the calculation of the equipment spending in the measurement of GDP by the government. The decline was at an unrevised level of 0.3% in the month of November.