WASHINGTON — U.S. August durables orders data came in soft, as anticipated, but with opposite effects than expected as underlying orders declined for a second month. This suggests manufacturing outside of autos will remain somewhat weak.
August durables orders posted a 0.1% increase, but were down 0.1% excluding transportation in a second drop. Ex-defense orders were up 0.5% in a rebound, but the winding down of military actions should reduce spending in this area ahead.
Underlying orders appear soft, with primary metals at a 0.5% decline, computers off 3.4%, and electronics down 0.5% -- the opposite of expectations. Machinery orders at a 0.9% rise and motor vehicles at a 2.4% increase, the best gain since February, were the strengths.
Boeing Corp. reported a revised 16 new orders for commercial airplanes, down from 50 in July, so it was no surprise that nondefense aircraft orders were down 1.2%. Before seasonal adjustment, civilian aircraft orders were down $2 billion.
Nondefense capital goods shipments were up 0.4% after a 1.4% drop in July. This suggests Q3 capital spending remains soft as the Q3 average barely has lift-off.
Inventories eked out a 0.1% gain, and shipments were up 0.9%. Inventories remain well above their June levels, suggesting some contribution to GDP growth.
Market News International is a real-time global news service for fixed-income and foreign exchange market professionals. See
