The numbers: Orders for long-lasting or durable goods rose slightly in August, but the increase was largely military-related and unlikely to persist. Demand was weak in most key industrial segments.
U.S. durable-goods orders increased 0.2% last month, the government said Friday. Economists surveyed by MarketWatch had forecast a 0.7% decline.Durable goods are products such as cars, computers or planes meant to last at least three years.What happened: Orders surged 15% for so-call defense capital goods — things like fighter planes, ships, tanks and weapon systems. Orders also rose for machines and primary metals.
A key measure of business investment known as core orders slipped 0.2% in August. These orders have fallen slightly in the past year, a decline that traces back to the beginning of the trade spat with China. Just two years ago, core orders were rising at a 10% yearly clip. Big picture: The U.S. trade fight with China hasn’t affected consumers all that much, but it’s another story for business. Manufacturers have been hardest hit, especially export-heavy firms whose sales overseas have stagnated.