We just got more good news about US manufacturing.
The latest report on durable goods orders topped expectations, while previous reports were also revised higher.
Durable goods orders in July rose 2%, while “core” orders — which excludes military orders and more volatile things like planes — rose 2.2%.
In a note to clients after the report, Ian Shepherdson at Pantheon Macro called this core number the report’s “really good news.”
Shepherdson said, “This is consistent with our view that the drop in equipment spending in the oil sector is now over, and that the rising underlying trend in non-oil spending is now becoming the dominant force again.”
Expectations were for the report to show orders fell 0.4% month-on-month in July after a 3.4% uptick in June.
“Core” orders were expected to rise just 0.3% in July after a 0.9% increase last month.
Durable goods orders include things such as planes, cars, and other heavy equipment.
June’s figures were also revised up, with durable goods orders in June rising to an increase of 4.1% from a previously reported 3.4%, while “core” orders were revised up to 1.4% from an earlier contraction of 0.9%.
Here’s the chart from Shepherdson showing the recent rebound in “core” orders.