Capital Goods Orders Beat Estimates for July

New orders for U.S.-made capital goods rose 1.4 percent last month, beating June’s 0.9 percent increase. Capital goods orders are up 7.2 percent year-over-year.

Capital goods refers to goods that are used in the production of other goods and services, which are used by businesses rather than sold directly to consumers. These numbers are a closely watched indicator for business spending plans, and indicate that business investment is for the third quarter has started on a strong note.

The more volatile durable goods numbers, which tracks orders of items ranging from toasters to washing machines that are meant to last more than three years, fell 1.7 percent as demand for civilian aircraft declined.