US Business Spending Was Hit by Political Shutdown

Orders for a wide range of U.S.-made capital goods sank more than previously estimated in September, a sign companies cut their investment plans sharply as Washington hurtled to the brink of default.

New orders of non-military capital goods other than aircraft, an indicator of business spending plans, fell 1.3 percent during the month, the Commerce Department said on Monday.

The data suggests businesses may have shut their wallets as a political impasse threatened to lead the government to miss payments on its obligations, and could give the Federal Reserve more reason to leave its bond-buying stimulus program at full throttle for the rest of 2013.

Previously, the government had estimated that the gauge of business spending plans dropped 1.1 percent in September.

via Reuters

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