Orders for commercial equipment received by US factories unexpectedly stopped growing in July after four consecutive months of growth, indicating that months of capital investment has ground to a halt.

Orders for core capital goods were flat in July, up from 1% the month before, according to data released by the commerce department on Wednesday. The index deducts aircraft and defence supplies and is seen as a barometer of investment in commercial equipment.

Orders for durable goods fell 0.1 per cent month-on-month, reflecting a decline in orders for commercial aircraft.

Analysts expect core capital goods orders to rise 0.5% and overall durable goods orders to fall 0.3%, according to a Bloomberg survey.

Equipment expenditure has been an important driver of economic growth since mid-2020. A rebound in consumer spending and low inventories have boosted demand for industrial goods, although capacity constraints such as raw materials and labour pose persistent obstacles to the pace of production.