Business Investment for Capital Goods Still Steady
Although we don’t have July figures yet, new orders for nondefense capital goods remained strong through June. We saw June orders rise by 5.8% year-over-year.
This is one of those data points that we can check off – businesses continue to invest (at least through data collected in June). We won’t get the next run of July figures until early September.
This is one of the components of the private investment figures that are so important. Again, what we see right now is a growth rate that isn’t as strong as we had in the 2010-2012 period – but it’s at one of the strongest rates of spending/investment since early 2014 and arguably the strongest in the last 5 years.
Again, if we are looking for indicators of economic activity, this one is not sending up any warning shots at this time.