US business spending picking up, but may slow in Q2

New orders for US-made capital goods unexpectedly fell in February, but a surge in shipments amid demand for machinery and electrical equipment supported expectations for an acceleration in business investment in the first quarter. Manufacturing is recovering from a prolonged slump, driven by the energy sector, bucking a slowdown in the broader economy.

The Federal Reserve last week described business investment as appearing to have "firmed somewhat." "The evidence is building that manufacturing activity is on something.

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