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Tuesday, August 20, 2019 3:05:48 AM EDT

Durable Orders Updated 25-Jul-19 09:18AM ET

New orders for durable goods jumped 2.0% m/m in June ( consensus 1.0%) following a downwardly revised 2.3% decline (from -1.3%) in May.

Excluding transportation, new orders rose a healthy 1.2% ( 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.
Total Durable Orders2.0%-2.3%-2.8%1.7%-2.6%
Less Defense3.1%-1.2%-3.3%0.1%-2.1%
Less Transport1.2%0.5%-0.1%-0.5%-0.3%
Capital Goods1.4%-6.5%-4.8%6.3%-7.3%
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%