New orders for durable goods jumped 2.0% m/m in June (Briefing.com consensus 1.0%) following a downwardly revised 2.3% decline (from -1.3%) in May.
Excluding transportation, new orders rose a healthy 1.2% (Briefing.com consensus 0.3%) following an upwardly revised 0.5% increase (from 0.3%) in May.
Machinery orders surged 2.4% after increasing 0.2% in May.
Primary metals orders were up 0.8% on the heels of a 0.7% decline in May.
Transportation equipment orders increased 3.8% after declining 7.5% in May. Motor vehicle and parts orders rose 3.1% following a 0.9% increase in May.
On a yr/yr basis, nondefense capital goods orders, excluding aircraft, were up 1.9%.
The key takeaway from the report is that it revealed a welcome pickup in business spending, which is embedded in the 1.9% increase in nondefense capital goods orders, excluding aircraft. Shipments of those goods were also up 0.6%, which will be a positive input for Q2 GDP forecasts.| JUN | MAY | APR | MAR | FEB | |
|---|---|---|---|---|---|
| Total Durable Orders | 2.0% | -2.3% | -2.8% | 1.7% | -2.6% |
| Less Defense | 3.1% | -1.2% | -3.3% | 0.1% | -2.1% |
| Less Transport | 1.2% | 0.5% | -0.1% | -0.5% | -0.3% |
| Transportation | 3.8% | -7.5% | -7.6% | 6.0% | -6.7% |
| Capital Goods | 1.4% | -6.5% | -4.8% | 6.3% | -7.3% |
| Nondefense | 4.8% | -4.9% | -7.0% | 2.6% | -5.9% |
| Nondefense/nonaircarft (core cap gds) | 1.9% | 0.3% | -1.1% | 0.3% | 0.3% |
| Defense Cap Goods | -16.3% | -14.1% | 6.9% | 32.7% | -16.5% |
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