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US durable goods orders contract in August

FXStreet (Mumbai) - The corporate spending in the US dropped at a slower than expected rate in August, the official data released today showed.

The headline durable goods orders contracted 2% in August, compared to the 2.2% decline expected. This is the seventh straight month of annualised decline in the durable goods orders.

Orders for core capital goods - a proxy for business investment - slipped 0.2%. Shipments of core capital goods, a category used to help determine quarterly economic growth, also fell 0.2% in August. Meanwhile, orders minus transportation were flat.

The headline figure dropped mainly on account of lower bookings for autos and airplanes.

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