U.S. core capital goods orders slow in July from prior month, while durable goods orders surge 11.2%

New orders for key U.S.-made capital goods slowed in July, suggesting the rebound in business investment could become more gradual amid uncertainty about the course of the Covid-19 pandemic, even as the recovery in manufacturing appears to be gaining traction.

Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, increased 1.9% last month, the Commerce Department said on Wednesday. These so-called core capital goods orders jumped 4.3% in June.

Economists polled by Reuters had forecast such orders climbing 1.9% in July.

Overall durable goods surged 11.2% in July, compared with expectations of an increase of 4.3% and a 7.6% increase a month earlier.

This is a breaking news story. Please check back for updates.

CNBC contributed to this report.

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