Durable Goods Orders Up Again in July

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Economic Update: Orders for Durable Goods

For the third consecutive month, orders for long-lasting goods increased in July.

The Commerce Department reported that Durable Goods orders rose by +4.2% during the month, which was above the consensus expectations for an increase of +2.3% and above last month’s increase of +1.6% (revised higher from +1.3%).

When you strip out the volatile orders for transportation, orders fell by -0.4%, which was below the consensus for +0.2% but better than last month’s -2.2%.

This better-than-expected headline will create further question as to whether or not the Fed will initiate another round of quantitative easing at next month’s FOMC meeting.

However, the nondefense capital goods ex-aircraft orders (which is a proxy for capital spending by business) fell -3.4% in July, the biggest drop since November. This number would seem to better reflect the recent weakness seen in the economy and the increased uncertainty regarding the near-term outlook.

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Other stories on the US Economy to review:

• Flash Manufacturing PMI Improves Slightly in August
  
• Existing Home Sales Rebound in July
  
• LEI Above Expectations in July
  
• Philly Fed Index Upticks but is below Zero Again
  
• Housing Starts Down and Building Permits Up in July
  
• Industrial Production, Capacity Utilization Up in July
  
• Empire Manufacturing Dives in August
  
• CPI Remained Flat in July
  
• Retail Sales Rebound in July
  
• PPI Hotter Than Expected in July
  
• NFIB Small Business Optimism Sags
  
• Wholesale Inventories Decline - And Yes, you should Care
  
• Q2 Worker Productivity and Labor Costs Rise
  
• ISM Services Perks Up
  
• Job Growth Improves in July
  
• Factory Orders Miss Mark in June
  
• Challenger Planned Job Cuts Drop in July
  
• ISM Manufacturing Still Sub-50 in July
  
• ADP Employment Report Surprises to Upside in July
  
• Consumer Confidence Perks Up in July, But...
  
• Chicago PMI Headline BTE, But Employment Dives
  
• Personal Income Up, Spending Flat in June
  
• GDP Slows to 1.5% in Q2
  
• Pending Home Sales Down in June

 

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