WASHINGTON — The latest U.S. durables orders data were far stronger than expected, suggesting that prior to the latest financial markets turmoil the manufacturing sector was chugging along.
July durable goods orders posted a 2.0% increase in a second good monthly gain, and the June revision was to a 4.1% rise. These gains reverse the spring weakening and continue the erratic up-move in orders. The third quarter starting level in July remains well above the second quarter average orders level.
Excluding transportation, new orders posted a 0.6% rise, and ex defense posted a 1.0% gain, also stronger than expected.
Boeing Corp. reported 101 new orders for commercial aircraft, down from 161 in June, but civilian aircraft orders in the official report were down 6.0%. These posted a $4 billion decline before seasonal adjustment.
Nondefense capital goods new orders ex-aircraft posted 2.2% increase, their best showing since June 2014. Shipments posted a 0.6% gain. Both show a strong start to Q3.
In components, only primary metals orders were weak at a 1.8% decline. Machinery orders were up 1.5%, computers gained 2.0%, and electronics advanced 1.3%.
Inventories were flat, and shipments rose 1.0%. This suggests manufacturing businesses are working their way through the prior inventory buildup.
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