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A shoppers looking at washing machines and dryers in Glenview, Illinois.
New orders for capital goods and deliveries in the US fell unexpectedly in May, but data for the previous month have been revised higher, suggesting moderate growth. Business spending for second-quarter equipment
The Commerce Department said Wednesday that Orders for non-military capital goods without aircraft, a closely watched proxy for business spending plans, had dropped 0.2 percent last month. Data for April has been revised to show that the so-called core capital goods orders rose 2.3 instead of the previous 1.0 percent.
Economists interviewed by Reuters predicted an increase in core capital orders last month of 0.5%. Tier 1 orders rose 6.8 percent year-on-year.  Core-goods shipments declined 0.1% last month, up 1.0% in April. Core capital shipments are used to calculate equipment expenditures in measuring the state's gross domestic product.
They are said to have gained 0.9 percent in April. Capital goods declines last month suggest a modest contribution to second-quarter GDP growth when compared to equipment spending
Labor market, consumer spending and trade deficit reports point to a strong acceleration in the economy second quarter. Estimates of gross domestic product for the period April to June are at an annualized 4.7 percent. Economy Grows 2.2 Percent in First Quarter
Business spending is supported by Trump's $ 1.5 trillion income tax cutback package, which came into force in January. But there are fears that escalating trade tensions between the United States and its major trading partners could offset fiscal stimulus.