US core durable goods orders jump in July
Orders in the US for goods made to last more than three years were much weaker-than-expected last month, but wholly due to declines in the oft-volatile categories for both civilian and military aircraft.
Total durable goods orders fell by 1.7% month-on-month in July to reach $246.9bn, according to the Department of Commerce.
That was much weaker than the 0.8% jump that analysts had penciled-in.
Versus a year ago they were 8.6% higher.
Excluding transportation they were up by 0.2% at $164.03bn, while excluding defence they declined by 1.0% to $233.9bn.
Big increases for computers and electronic parts and motor vehicles and parts were more than offset by drops in orders for both civilian and military aircraft and parts, with the latter two categories seeing declines of 35.4% and 34.6% versus June, respectively.
Nevertheless, so-called 'core' orders for capital goods, which exclude both those for aircraft and from the defence sector, rose by a solid 1.4% on the month to reach $69.7bn and were 7.2% higher versus one year ago.
Readings for core capital goods orders in prior months were also revised slightly higher, Andrew Hunter at Capital Economics pointed out.
"This suggests that, after a relatively subdued 3.9% annualised gain in the second quarter, business equipment investment is set for stronger growth in the region of 7% to 8% annualised in the third quarter," Hunter told clients.
"[...] Overall, a solid report, but with manufacturing activity softening in recent months and the capex intentions surveys also appearing to have peaked, a sustained return to the rapid pace of investment growth seen throughout 2017 still looks unlikely."