Core capital goods orders fall 0.1 in July
Core capital goods shipments decrease 0.4
Durable goods orders increase 9.9

WASHINGTON, Aug 26 Reuters New orders for key U.S.manufactured capital goods unexpectedly fell in July and data for the prior month was revised lower, suggesting a loss of momentum in business spending on equipment that extended into the early part of the third quarter.

The report from the Commerce Department on Monday also indicated that the manufacturing sector continued to tread water amid higher interest rates. While orders for longlasting manufactured goods rebounded sharply last month, aircraft accounted for the increase.

Still, the pace of growth in business equipment investment is likely sufficient to sustain the economic expansion.

The economy hasn39;t hit the skids yet, said Christopher Rupkey, chief economist at FWDBONDS. Business investment in longlived core capital goods orders has slowed somewhat at the start of the third quarter, but new orders are miles away from indicating an economic recession for the broader economy.

Nondefense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, dipped 0.1 last month after a downwardly revised 0.5 increase in June, the Commerce Department39;s Census Bureau said.

Economists polled by Reuters had forecast these socalled core capital goods orders would be unchanged after a previously reported 0.9 jump in June. Core capital goods orders rose 0.5…