US July durable goods orders jump 5.9 pct, ex-transportation up 3.7 pct

BY

New orders for durable goods in the US jumped 5.9 pct in May, up not just on the expected
take-off of aircraft orders at Boeing, but also with significant increases in demand for autos,
communications equipment, machinery, metals and military equipment.

It was the biggest increase in new durables orders since the +8.8 pct in September of last year. Analysts had expected a far smaller increase of 1.1 pct following
June s upwardly revised 1.9 pct growth.

Excluding transportation, July new orders rose 3.7 pct, also well above the expected 0.9 pct
rise and the first ex-transportation orders increase in the last three months. In June, durables
orders ex-transportation fell 1.2 pct, revised.

Orders for military aircraft and other defense capital goods were up 35.7 pct and excluding
those, July new orders were up 4.9 pct.

So-called core capital goods orders, non-defense and ex-aircraft, were up 2.2 pct last month,
their largest increase since a 4.6 pct jump in March of this year.

In the roll call of business categories with major improvements in their order books last month, it was autos +9.8 pct, communications equipment +20.7 pct, machinery +5.5 pct and metals +7.9 pct, as well as the defense goods.

July shipments rose 3.8 pct and unfilled orders 2.4 pct, while inventories were essentially unchanged, up just 0.1 pct.

JKL

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