Durable goods: Transportation saves the day, core capital orders disappoint

Reuters

Durable goods: Transportation saves the day, core capital orders disappoint

2024 8월 26, 오후 3:22 GMT

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DURABLE GOODS: TRANSPORTATION SAVES THE DAY, CORE CAPITAL ORDERS DISAPPOINT

New orders for long-lasting, U.S.-made goods USDGN=ECI surged by 9.9% last month, marking a solid rebound from June's 6.9% decline and breezing past the 5.7% consensus.

There was little market reaction to the data.

Digging deeper into the Commerce Department's report, which includes everything from air fryers to attack drones, a 34.8% increase in transportation items and a 41.9% upswing in nondefense capital goods helped the top line beat expectations, while a 2.6% drop in motor vehicles/parts limited the upside.

Excluding transportation items, new orders actually dipped 0.2%, while omitting defence goods, orders jumped 10.4%.

Outpointing that this was the largest monthly top line percentage increase in four years, Bernard Yaros, U.S. lead economist at Oxford Economics calls out transportation as the driver.

"Boeing, for example, registered 72 gross orders in July, up from 14 in the prior month," Yaros writes.

Core capital goods, which strips away aircraft and defence merchandise - and is widely considered a barometer of U.S. corporate spending plans - unexpectedly dipped 0.1%, following a downwardly revised 0.5% gain the month prior.

"Our real-time tracker of Q3 equipment investment suggests that growth will come in at roughly half" that of the second quarter, Yaros adds.

But he also sees clearer skies ahead.

"Interest-rate cuts by the Federal Reserve, growth in the digital economy, and the past boom in manufacturing construction all support our baseline forecast for solid growth in this category of business investment," Yaros says.

(Stephen Culp)

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MONDAY'S EARLIER LIVE MARKETS POSTS

WALL STREET STARTS MIXED AS S&P 500 FLIRTS WITH RECORD CLOSING HIGH - CLICK HERE

JOBS DATA TO DETERMINE SIZE OF SEPTEMBER FED CUT - CLICK HERE

SOFT LANDING MEANS SOFT DOLLAR? NOT SO FAST - CLICK HERE

PRETTY QUIET IN MARKETS - CLICK HERE

THE EUROPEAN STOCKS BULLS MUST BE IN BRITAIN - CLICK HERE

MARKETS REASSURED BY THE POWELL PUT - CLICK HERE

Opening snapshot https://reut.rs/4dBY4aF

Durable goods https://reut.rs/473912v

Core capital goods https://reut.rs/3XjYDjy