By Mark Pender

NEW YORK (MNI) – MNI’s U.S. capital goods index fell more than
2-1/2 points in the June 17 period to 72.0, well over 50 to indicate
very strong growth in year-on-year business conditions but below trend
to indicate the risk of slowing growth, according to the results of
Market News International’s weekly survey released Monday.

Sales are a year-on-year +14.4% with foreign exchange adding three
percentage points to export sales.

Warnings are popping up from non-residential construction and
aerospace, two sectors which had been expected to contribute to growth
this year.

For the first time this year moving averages are slowing. Income,
at +17%, is at its slowest rate since the fourth quarter. Sample size in
the period is 150 companies.

Editor’s Note: MNI compiles its capital goods index based on a
weekly sample of company news and data.

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