JULY DURABLE GOODS ORDERS UP 5.9%, WELL ABOVE EXPECTATIONS
New orders for durable manufactured goods rose 5.9% in July, well above the 1.0% increase that analysts had expected. That followed an upwardly revised increase of 1.9% in June. The increase was the largest for durable goods orders since last September. Durable goods excluding transportation equipment rose 3.7%, the first increase since April. Orders were up for most major subcategories except computers and electrical equipment and appliances. New orders of communications equipment were up over 20%, motor vehicle orders up almost 10%, machinery orders up 6% and orders for nondefense aircraft were up 13%. New orders for defense aircraft were also up 16%. Nondefense capital goods orders, a measure of business investment in new equipment, rose 5.8% overall and 2.2% with aircraft orders excluded. That was the largest increase in that series since March. However, on a year-over-year basis, new orders for durable goods are up only 1.2% from last July and once transportation orders are excluded, new orders are 0.4% below last July’s levels. Nondefense capital goods orders, excluding the strong airline orders, are down 1.3% from July 2006.
www.census.gov/m3
Kathryn Kobe NTKN, Washington DC