Durable Goods Orders Higher Than Expected
Durable goods orders gained 1.3 percent in June, despite expectations for no change. A pop in aircraft orders helped; ex-transportation, orders were up 0.7 percent. Nondefense capital goods orders ex-aircraft were up 2.6 percent, suggesting third quarter business spending may not slow despite cooling domestic demand and higher input prices.
Orders Up, Ex-Transport Orders Looking Stronger
- Durable goods orders gained 1.3 percent in July, the third consecutive positive month, and last month's number for durable goods was revised to a 1.3 percent gain.
- A 28 percent pop in nondefense aircraft orders helped the headline, but after stripping out the volatile transportation components orders were still up 0.7 percent.
Ex-Aircraft Orders Still Strengthening
- Nondefense capital goods orders ex-aircraft were up 2.6 percent in June. As a key measure of business investment, gains in this series suggest positive Q3 spending.
- Durable goods shipments ex-transportation were up 2.0 percent in July. Despite cooling domestic demand, shipments continue to rise, perhaps fueled by strong export growth.
Wachovia Corporation
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