U.S. News: Businesses Spend More --- Orders for Equipment Rise in Encouraging Sign for Recovery
Companies boosted their orders for capital goods such as machinery and computers in February, in an encouraging sign that U.S. business is confident enough to support the economic recovery.</br></br>A key barometer of business investment -- orders for nondefense capital goods, excluding aircraft -- rose 1.1% last month, erasing part of a sharp drop in January, the Commerce Department said Wednesday.</br></br>Overall orders for durable goods -- long-lasting items ranging from semiconductor chips to semi-trailer trucks -- rose 0.5% to a seasonally adjusted $178.12 billion.</br></br>The uptick in capital-goods orders added to economists' hopes that rising business spending can help lead the recovery, compensating for cautious consumers and a moribund housing market.</br></br>So far, though, the pace of the business-sector expansion doesn't appear to be fast enough to drive a sharp economic rebound.