A GAUGE of U.S. business investment spending plans increased solidly for a second straight month in April, a hopeful sign for manufacturing activity after a long spell of weakness.

    The overall economy is gradually firming, with other reports Tuesday showing consumer confidence perking up this month and house prices extending gains in March, which should boost household equity and support consumer spending.

    The U.S. Commerce Department said non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, rose 1 percent last month after an upwardly revised 1.5 percent increase in March.

    The so-called core capital goods orders were previously reported to have increased 0.6 percent in March.

    Business spending has slackened as a sharp decline in energy prices forced oilfield companies, including Schlumberger and Halliburton, to slash their capital expenditure budgets. Investment has also been undermined by a strong dollar, which has squeezed profits of multinational corporations.

    In a separate report, the Conference Board said its index of consumer attitudes rose to 95.4 this month from 94.3 in April.

    Consumers’ outlook for the labor market improved, with a rise in the share of households anticipating more jobs in the months ahead.

    The rebound in business spending, together with a sturdy labor market, a strengthening housing market and firming underlying inflation, should keep the Federal Reserve on course to raise interest rates later this year.

    The increase in core capital goods orders offers cautious optimism that business spending outside the energy sector will pick up in the coming months and support manufacturing, and the broader economy, after a dismal first quarter.(SD-Agencies)