U.S. core capital goods orders strong; weekly jobless claims surge

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U.S. core capital goods orders strong; weekly jobless claims surge
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U.S. weekly jobless claims post biggest rise in 19 months

WASHINGTON - New orders for U.S.-made capital goods increased by the most in eight months in March, but a drop in shipments suggested business spending on equipment slowed down in the first quarter.

The Commerce Department said orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, surged 1.3 percent, powered by a jump in demand for computers and electronic products. Business spending on equipment is expected to have slowed in the first quarter because of the delayed impact of sharp drops in oil prices toward the end of 2018 and fading depreciation provisions in the 2018 tax bill.

U.S. Treasury prices fell on the data, while the dollar held gains. U.S. stock index futures were little changed.In March, orders for machinery rose 0.3 percent after declining 0.7 percent in February. Orders for computers and electronic products soared 2.2 percent. There were also increases in orders for electrical equipment, appliances and components. But orders for primary metals fell, as did those for fabricated metal products.

Boeing reported on its website that it received 44 aircraft orders, up from only five in February. There were no orders booked for its troubled 737 MAX aircraft. Boeing’s fastest-selling 737 MAX jet was grounded in March after two fatal plane crashes in five months.

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