Orders for business equipment from US firms decreased more than expected in March, indicating that increased borrowing costs and a bleak economic outlook are limiting capital investment.

The value of core major good orders, a proxy for equipment investment that excludes aeroplanes and military hardware, fell by 0.4% in March

Bookings for basic metal and machinery increased slightly last month, but orders for motor vehicles and communications equipment declined.

Negative core capital goods orders suggest that future production and shipment will be reduce.

The factory index for the Institute for Supply Managements fell in March to its lowest level since mid-2020.