US business orders rose in June for the first time in three months.
Non-military capital goods, a proxy for future business investment surged 0.2 percent from a decline of 0.5 percent in May.
Shipments for business equipment dropped 0.4 percent after previously decreasing 0.5 percent in May.
The total bookings for durable goods — those meant to last at least three years fell 4 percent, more than 1.4 percent drop forecast by economists. The most in 2 years.
This, economists believe is not enough to support the weak manufacturing sector weigh upon by fall in oil prices and global uncertainty.
“This report doesn’t provide any indication that the weak tone is likely to turn the corner anytime soon,” said Millan Mulraine, deputy head of U.S. research and strategy for TD Securities USA LLC in New York and the best forecaster of the business equipment proxy over the past two years, according to Bloomberg. A significant pickup is also unlikely in the coming months, “particularly as the uncertainty surrounding the fallout from the Brexit vote dampens business investment activity.”
“Decision-makers are reluctant to spend on equipment,” Kevin Cummins, an economist at RBS Securities Inc. in Stamford, Connecticut, said before the report. “That’s certainly one thing that has remained pretty weak and lackluster throughout the recovery.”