Durability of Durable Goods Orders

The headline decline in durable goods orders (-2.5%) was greater than the market expected, but ex-transportation figure rose 1.1% , well above the flat expectation and is the highest in four months. In addition to the closure of auto plants in the first part of the month, commercial aircraft bookings fell 39% after the 60% jump in May. Orders for non-defense, capital goods, excluding aircraft, a lead indicator for investment rose 1.4% after the 4.3% rise in May. The shipments of those goods, which is used for the government's estimate for GDP rose 0.1%, the first gain this year.

The U.S. dollar is little changed on the report, but after rallying in Asia and Europe it remains overextended according to short-term technical studies and may continue to see those gains pared.
Durability of Durable Goods Orders Durability of Durable Goods Orders Reviewed by magonomics on July 29, 2009 Rating: 5
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