The Commerce Department said on Monday that new orders for capital goods increased 4.6 percent last month. The category of nondefense capital goods orders excluding aircraft, a closely watched proxy for investment plans, edged up 0.2 percent in December.
In a further sign of business confidence, the November reading on capital spending plans was revised higher to show a 3 percent gain, up from the 2.6 percent rise reported a month ago.
Many economists had expected businesses to invest more timidly late last year because of uncertainty over government spending cuts and tax increases that had been scheduled to begin this month. But Congress struck a deal to avoid or postpone most of the austerity measures.
Despite the uncertainty, the new data pointed to growing economic momentum as companies sensed improved consumer demand.
“It certainly seems to us that companies are slowly but surely expanding,” said Tim Ghriskey, chief investment officer at the Solaris Group in Bedford Hills, N.Y.
A second report showed that a measure of pending home sales slipped 4.3 percent in December. Still, the housing sector posted a rebound last year and economists expect it will add to growth again in 2013.
New orders for overall durable goods — long-lasting factory goods as diverse as toasters and automobiles — jumped 4.6 percent in December, beating economists’ expectations for a 1.8 percent gain. The gains were broad-based, with orders for machinery, cars and primary metals all increasing.
Orders for civilian aircraft surged 10.1 percent.
Article source: http://www.nytimes.com/2013/01/29/business/economy/durable-goods-orders-exceed-estimates.html?partner=rss&emc=rss
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