New orders for core capital goods (nondefense capital goods excluding aircraft) fell 0.5 percent in July compared with June. The decline, however, followed an upwardly revised 5.4 percent gain in June (originally a 1.4 percent increase). Shipments of core capital goods increased 1.5 percent during the same period and also saw June data revised up to a 0.9 percent gain from a 1.0 percent decrease. The rise in core shipments in June and July suggests that business investment in equipment started the third quarter with solid momentum. Year-over-year growth rates in orders and shipments remain modest compared with the first several years of the recovery.
