WASHINGTON - New orders for key U.S.-made capital goods fell more than expected in September and shipments also declined, a sign that business investment remains soft amid the fallout from the U.S.-China trade war but other data on Thursday showed the spat has yet to have much effect on the overall jobs market.
The auto sector was bruised by an ongoing strike at General Motors. The United Auto Workers union reached a tentative agreement with the Detroit automaker last week on a new four-year-contract but members remain off work until they finish voting on the proposal this Friday. Core capital goods orders increased 1.0% on a yearly basis while shipments of such goods dropped 0.7% last month. Core capital goods shipments are used to calculate equipment spending in the government’s gross domestic product measurement. Shipments for August were flat after being revised from a previously reported 0.3% gain.
U.S. manufacturing output fell more than expected in September, Fed data showed last week while business investment fell at a 1.0% annualized rate last quarter, the biggest drop since the fourth quarter of 2015, the government reported last month. Initial claims for state unemployment benefits declined 6,000 to a seasonally adjusted 212,000 for the week ended Oct. 19, the Labor Department said on Thursday. Data for the prior week was revised to show 4,000 more claims than previously reported.
The four-week moving average of initial claims, considered a better gauge of labor market trends as it irons out week-to-week volatility, declined 750 to 215,000 last week.
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