Durable Goods Orders Rise 3.4% in June; Ex-Transportation Up 0.8%

WASHINGTON — The latest U.S. durables orders data show the expected rebound at the end of second quarter.

June durable goods orders posted a 3.4% increase, ex transport rose 0.8%, and ex defense grew 3.8%, all about as expected.

This follows a 2.1% decline in May and a 1.7% drop in April for overall orders, so it's merely a rebound, though a sign of some underlying stabilization in manufacturing going into second half.

Boeing Corp. reported 161 new orders for commercial aircraft, up from 11 in May. This largely explains the headlines.

Auto and parts orders posted a 0.2% rise despite drop in sales. Elsewhere, machinery orders posted a 1.4% increase, computers rose 0.2%, and electronics gained 2.8%. These were the areas of strength.

Primary metals orders at a 1.4%decrease was more worrisome. These are often the starting point for other production.

Shipments were up 0.1% and inventories rose 0.4%.

Nondefense capital goods shipments were off 0.2% after a 1.1% decline in May and a 0.9% increase in April. The Q2 average was below the end-of-Q1 starting point, suggesting capital spending was fairly weak.

Market News International is a real-time global news service for fixed-income and foreign exchange market professionals. See www.marketnews.com.

Market News International is a real-time global news service for fixed-income and foreign exchange market professionals. See www.marketnews.com.
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