WASHINGTON, Sept 26 (Reuters) - Weaker military demand pushed U.S. durable goods orders down in August, the government said on Thursday, but the drop was smaller than expected and a rise in capital goods orders offered a glimmer of hope a long-lasting business investment slump may be nearing an end.
Orders for durable goods -- costly manufactured items intended to last at least three years -- fell 0.6 percent last month after a downwardly revised 8.6 percent rise in July, the Commerce Department said. Economists polled by Reuters had expected durable goods orders to drop 2.6 percent.
While overall orders slipped, the department said orders would have risen 0.6 percent if defense orders were excluded, the fourth increase in the last five months for that category. In addition, non-defense capital goods orders -- a gauge of business investment spending -- rose 5.9 percent and 0.6 percent excluding volatile aircraft orders, building on increases in July.