Daily News: May 21, 2012

FOMC: Indicators Point to Pickup in Equipment Expenditures

According to the recently released minutes of the last FOMC meeting, The Fed said information reviewed at the meeting suggested that economic activity was expanding moderately.

The Fed said real business expenditures on equipment and software appeared to rise modestly in the first quarter. Nominal shipments of non-defense capital goods excluding aircraft increased in February and March after declining in January; new orders for these capital goods increased, on balance, in February and March, and they continued to run above the level of shipments.

The buildup of unfilled orders in recent months, along with improvements in survey measures of capital spending plans and some other forward-looking indicators, pointed toward a pickup in the pace of expenditures for business equipment.

To read the full FOMC minutes, click here.