Orders for long-lasting goods unexpectedly fell in February, raising concern over the sustainability of the rebound in U.S. business investment.
Bookings for goods meant to last at least three years dropped 0.9 percent after a 3.6 percent gain the prior month that was larger than initially reported, the Commerce Department said Thursday in Washington.
Other reports showed fewer Americans filed claims for jobless benefits last week, and consumer comfort dropped to the lowest level in seven months.
The data on orders stands in contrast to other reports this month that showed production picked up in February and factory purchasing managers were more optimistic. While rising exports to China and other emerging economies will benefit manufacturers such as Texas Instruments Inc., the need for U.S. companies to replace outdated equipment may not be as pressing as earlier in the recovery.
“There is a risk that capital spending will be flat in the first half of the year,” said Harm Bandholz, chief U.S. economist at UniCredit Global Research in New York.
At the same time, he said, “the consumer will pick up the slack, driven by the labor market and also by the tax deal” that President Barack Obama reached with Republicans in December.
The number of workers filing claims for jobless benefits declined by 5,000 to 382,000 in the week ended March 19, Labor Department figures showed, in line with the median forecast of economists surveyed by Bloomberg.
The total sum of those receiving government payments dropped to the lowest level in almost three years.
