Economic Update: Orders for Durable Goods
The Commerce Department reported that orders for Durable Goods (items expected to last longer than a year) fell hard in June.
Led by a decline in civilian aircraft, orders for durable goods decreased by -4.0% in June, which was below the consensus expectations for a reading of -1.4%.
This month’s reading was below last month’s revised reading of -2.8% (revised lower from -2.5%).
When you strip out the volatile data for transportation, orders fell by -0.5% which was below the consensus.
On a year-over-year basis, durable goods orders were down -0.7%, while core business orders declined -4.1%. Analysts indicate that capex demand remained weak and factory activity in general continued to struggle.
Note that this is a very volatile data series and each report is subject to significant revisions.