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Orders for Durable Goods Dive in June

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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.


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About the Author

David Moenning is the Chief Investment Officer at Sowell Management Services. Dave began his investment career in 1980 and has been an independent money manager since 1987. Thus, Dave has been live on the firing line and investing for a living for more than 29 years.