U.S. durable goods orders fell -2.8% mom to USD 302.8B in July, marking the third decline in four months but performing better than forecasts of -4.0% mom. Transportation equipment, also down in three of the past four months, was the main drag, plunging -9.7% mom to USD 101.7B. Ex-defense orders also slipped -2.5% to USD 284.5B.
Stripping out the volatile transport sector, however, orders rose 1.1% mom to USD 201.1B, far stronger than the 0.3% mom expected. The positive core reading suggests that underlying business investment remains more stable than the headline figure implies, limiting concerns of a broader manufacturing downturn.
