US investment plans

WASHINGTON: A gauge of US business investment plans posted its largest increase in just over a year in July, underscoring the durability of the economic recovery despite a slowing global economy.

The Commerce Department said on Wednesday non-defence capital goods orders excluding aircraft, a closely watched proxy for business spending plans, increased 2.2 per cent last month, the biggest rise since June last year.

That was on top of an upwardly revised 1.4 per cent increase in June and marked two straight months of hefty gains. Economists had forecast these so-called core capital goods rising only 0.4 per cent in July after a previously reported 0.9 per cent increase in June.

The report added to employment, retail sales, housing and consumer spending data in highlighting the US economy’s resilience.