US core capital goods orders drop in April

The news: New orders for key US manufactured capital goods dropped in April, its biggest decline since October, suggesting a weakening of business spending on equipment at the beginning of the second quarter.

The numbers: Data from the US Commerce Department’s Census Bureau saw the value of core capital goods orders, which strips out aircraft and military hardware spending, fell 1.3% in April after a March gain was revised up 0.3%.

New orders for manufactured durable goods in April, down following four consecutive monthly increases, fell USD19.9 billion or 6.3% to USD296.3 billion ($459.1 billion).

The context: The drop in goods orders signals that US businesses are being cautious about expenses and working to cut costs as President Donald Trump continues injecting uncertainty as his trade war continues.