Updated: 27-Jul-17 09:32 ET
| June Durable Orders |
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| Updated: 27-Jul-17 09:32 ET |
Highlights
- Durable orders for June surged 6.5% (Briefing.com consensus +2.9%) on the back of a robust gain in transportation equipment orders (+19.0%) that was powered by a 131.2 % increase in nondefense aircraft orders.
- Excluding transportation, new orders for durable goods were up a more modest 0.2% (Briefing.com consensus +0.5%).
Key Factors
- On a year-over-year basis, new orders for durable goods are up 5.0%. Excluding transportation, they are up 4.9%.
- Excluding transportation, the pockets of order strength in June were found in primary metals (+0.1%), fabricated metal products (+0.7%), machinery (+0.2%), and communications equipment (+1.3%)
- The main pockets of order weakness in June were motor vehicles and parts (-0.6%), computers and electronic products (-0.3%), and electrical equipment, appliances and components (-1.7%)
Big Picture
- The key takeaway from the report is that orders for nondefense capital goods excluding aircraft -- a proxy for business investment -- were down 0.1%. Shipments of those same goods, though, were up 0.2% on the heels of a 0.4% increase in May, which will be a positive input for Q2 GDP forecasts.
| Category | JUN | MAY | APR | MAR | FEB |
| Total Durable Orders | 6.5% | -0.1% | -0.8% | 2.4% | 1.4% |
| Less Defense | 6.7% | 0.4% | -0.8% | 1.1% | 1.9% |
| Less Transport | 0.2% | 0.6% | -0.4% | 0.9% | 0.3% |
| Transportation | 19.0% | -1.6% | -1.6% | 5.4% | 3.6% |
| Capital Goods | 19.0% | -0.9% | -1.9% | 4.7% | 2.3% |
| Nondefense | 21.0% | -0.2% | -2.4% | 1.9% | 4.2% |
| Nondefense/nonaircraft (core cap gds) | -0.1% | 0.7% | 0.3% | 0.0% | 0.1% |
| Defense Cap Goods | 3.8% | -6.2% | 1.7% | 30.6% | -12.7% |
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