Four-year high in US growth threatened by slower capital spending

Softer capital spending at the end of the summer shows the U.S. economy may be slowing more than expected from this spring’s four-year high as President Trump escalates a trade war.

Orders for capital goods excluding aircraft slipped 0.5 percent in August, and shipments climbed just 0.1 percent, both of which were worse than Wall Street’s consensus, Goldman Sachs economist Jan Hatzius wrote in a report on Thursday. While 4.5 percent growth in overall orders topped expectations, the details “show signs that underlying demand is moderating,” said Jonathan Millar of British lender Barclays Plc.