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UPDATE: Durable goods jumped 1.6 per cent in June, handily beating analyst expectations for a 0.3 per cent gain.Excluding transportation, however, the durable goods actually declined 1.1 per cent versus expectations of a 0.1 per cent decline.
Some of that could be due to an upward revision of May data, in which durable goods orders actually rose 0.8 per cent versus earlier estimates of 0.4 per cent growth.
The fact that transportation numbers were such a strong piece of this report indicates that a lot of this spending is coming from bigger companies, with demand for aircraft and military spending higher.
At the same time, demand for durable goods by consumers remains unclear, and maybe even a little weak.
Nonetheless, this headline beat suggests demand for manufacturing products which create jobs, and that’s always a good sign for the economy.
ORIGINAL: We’ll have June data on durable goods out in just a few moments.
Analysts expect durable goods orders to rise a modest 0.3 per cent, after a revised increase of 1.3 per cent last month.
In particular, a better-than-expected demand for long-lasting U.S.-made products would indicate continuing strength in the consumer base, something that has generated gains so far this year.
A bad number would confirm some of the data we’ve seen recently suggesting that the pace of consumer demand growth is slowing, an ominous sign for the economy moving forward.