WASHINGTON — U.S. companies remained cautious in September and held back on orders for long-lasting manufactured goods that signal investment plans. Weak business investment has contributed to slower economic growth.
The Commerce Department said Thursday that orders for durable goods jumped 9.9 a percent last month.
While it was the biggest gain in nearly three years, most of the September gain was driven by a tremendous spike in aircraft orders, which are very volatile and plummeted in the previous month.
When taking out transportation, orders rose just 2 percent. And demand for core capital goods, such as machinery and equipment, were unchanged in September. Core capital goods are considered a proxy for business investment plans. Those orders rose only slightly in August after steep declines in July and June.
Durable goods are products expected to last at least three years. Orders can fluctuate sharply from month to month.