Last Update: 28-Aug-15 18:14 ET
- Durable goods orders increased 2.0% in July after increasing an upwardly revised 4.1% (from 3.4%) in June. The Briefing.com Consensus expected durable goods orders to decline 0.6%.
- Excluding transportation, durable goods orders increased 0.6% in July after increasing an upwardly revised 1.0% (from 0.6%) in June. The consensus expected these orders to increase 0.4%.
- A big reason for the much better-than-expected gain in durable goods demand came from the automotive sector. Orders for motor vehicles and parts products rose 4.0% in July after increasing 0.8% in June. That move follows the huge increase in the production and assembly of motor vehicles that was reported in the July industrial production data.
- Aircraft orders, which were expected to push overall durable goods orders into negative territory, declined a relatively modest 7.8%. That drop was easily offset by the aforementioned increase in motor vehicle orders.
- Demand for finished durable goods was extremely strong. Orders of machinery (2.0%), communications equipment (1.8%), and electrical equipment (1.3%) all exceeded 1.0% growth.
- Demand for manufacturing inputs, however, wasn’t so hot. Both primary (-1.8%) and fabricated metals (-1.3%) orders declined in July.
- Business capital demand remained very robust. Orders of nondefense capital goods excluding aircraft increased 2.2% in July after increasing an upwardly revised 1.4% (from 0.7%) in June. That was the largest increase in orders of business capital goods since a 5.8% gain in June 2014. Shipments, which factor into GDP growth calculations, rose 0.6% in July after increasing 0.9% in June.
- Manufacturing production growth still lags orders demand trends, which is producing large numbers of unfilled backlogs.
|Total Durable Orders
|Nondefense/nonaircraft (core cap gds)
|Defense Cap Goods