A gauge of U.S. business investment plans rebounded solidly in June, suggesting the drag on manufacturing from capital spending cuts was starting to ebb.
The slightly upbeat report bolsters the economic growth outlook and supports views the Federal Reserve will raise interest rates later this year. The Fed's policy-setting committee meets on Tuesday and Wednesday. The Commerce Department said on Monday non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, increased 0.9% last month after a 0.4% drop in May.
U.S. financial markets were little moved by the report as a plunge in Chinese stocks overnight sparked concerns about the global economy. Prices for U.S. government debt rose, while U.S. stock index futures were trading lower.