Demand for US-made capital goods declines

Demand for US-made capital goods recorded its biggest drop in eight months in September, a cautionary note for an economy that otherwise seems to be moving forward at a steady clip.

A moderation in home price gains in August, also reported on Tuesday, offered a further suggestion the economy may have cooled a bit, although consumer confidence jumped to a seven-year high this month.

“The weak capital goods orders and house price data confirm the slowdown in activity, but the burst in consumer confidence suggests that US households are very optimistic about the outlook,” said Millan Mulraine, deputy chief economist at TD Securities in New York.