July Durable Goods Orders Strong

Exports have been weak but they didn't hold down July's durable orders which, for a second straight month, are strong, and strong nearly across the board. New orders rose 2.0 percent in the month which easily beat out top-end Econoday expectations for 1.2 percent. Excluding transportation, orders rose 0.6 percent which is near the top-end forecast for 0.7 percent. Capital goods data show special strength with ex-aircraft orders up 2.2 percent following June's 1.2 percent gain and with related shipments up 0.6 percent following a gain of 0.9 percent. This report speaks to domestic strength and should help offset ongoing concerns over global volatility.

Recent History Of This Indicator:
A bounce lower for aircraft orders is expected to pull down durable goods orders in July, to a consensus minus 0.4 percent in what would fail to extend a rare gain in June. But when excluding transportation, durable goods orders are expected to show an increase, at 0.4 percent which would only be the second gain this year.