WASHINGTON, June 25 (Reuters) - New orders for key U.S.-made capital goods rebounded more than expected in May, but recouped only a portion of the prior two months’ declines, suggesting business investment could lag the broader economic recovery from the COVID-19 pandemic.
Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, increased 2.3% last month as demand rose across the board, the Commerce Department said on Thursday. These so-called core capital goods orders dropped 6.5% in April.
Economists polled by Reuters had forecast core capital goods orders advancing 1.0% in May. Core capital goods orders fell 2.5% on a year-on-year basis in May. (Reporting by Lucia Mutikani Editing by Chizu Nomiyama)