Durable goods orders climbed 0.7% in June, which was a bit higher than the 0.5% growth expected by economists.
Nondefense capital goods orders excluding aircraft (core capex) — an indicator of business spending — jumped 1.4% versus expectations for 0.5% growth.
However, is core capex growth in May was revised to -1.2% from an earlier estimated of +0.7%.
“The underlying tone of this report was disappointing,” said TD Securities’ Millan Mulraine. “Outside of the big bounce in core orders in June, which reflects a rebound from the weakness in recent months, the weak performance in core capital goods shipments during the quarter suggests that this segment of the economy is unlikely to contribute much to economic activity this quarter.”
But not everyone is worried.
“Looking ahead, June’s strong orders data and other survey evidence suggest that business investment will continue to grow at a decent rate in the second half of the year,” said Capital Economics’ Paul Dales. “This makes sense when some producers are pushing up against capacity constraints and when business loans are surging.”
Here is a breakdown of the items ordered:
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