Official figures show that new orders for long-lasting US factory goods posted only a moderate increase in February, supporting the view that economic growth in the first quarter was shaping up to be lack-lustre.
Durable goods orders increased by 2.2% last month, missing economists' forecasts and only partially reversing January's revised 3.6% decline, Commerce Department data showed. A gauge of future business investment also fell short of forecasts.
Manufacturing has been a key support for the US recovery from the 2007-2009 recession, and a recent acceleration in job growth has boosted hopes the extra income will create a virtuous cycle that leads to more spending.
But today's data suggested the factory sector might not be growing as quickly as analysts had expected.
Economists expected orders for durable goods, which are items from toasters to aircraft that are meant to last three years or more, to rise 3%.
Excluding transport, orders climbed 1.6%. Machinery orders increased 5.7%.
Orders for non-defence capital goods excluding aircraft, a closely watched indicator of future business investment, edged 1.2% higher, missing analysts' expectations of a 2% gain. They fell 3.7% in January.
A 3.9% increase in bookings for transportation equipment in February - including a 6% jump in civilian aircraft orders - helped drive overall orders higher.
