A closely watched gauge of U.S. business investment rose in July even as overall factory orders fell, suggesting steadier momentum in America’s industrial sector.
Non-defense capital goods orders excluding aircraft—a key proxy for business investment in equipment—climbed 1.1 percent in July, according to a U.S. Census Bureau report published on Sept. 3.
The gain followed June’s 0.6 percent decline and indicates companies are stepping up purchases of machinery, computers, and other long-lived equipment tied to productivity and capital expenditure. Shipments in the same category, which feed directly into GDP’s equipment spending measure, increased 0.7 percent in July, building on a 0.4 percent gain in June….