Durable Goods Orders Up, Signs of Strength in Q2 Business Spending

Daily Forex Fundamentals | Written by Wachovia Corporation | Jul 25 08 13:31 GMT |

Orders for durable goods were up 0.8 percent in June, despite expectations of a slowdown. Stripping out the volatile transportation component, orders were up 2.0 percent - the strongest monthly gain of the year. Non-defense orders ex-aircraft were up 1.4 percent, a sign business spending may not be as weak as many expected in the second quarter. Orders Up, Ex-Transport Orders Looking Less Weak Businesses scaled back in the second quarter but maybe not as much as first reported. Last month's flat number for durable goods was revised to slightly positive, while this month's solid gain suggest signs of strength. Ex transportation, orders were up 2.0 percent, the three month moving average shows solid positive momentum. Ex Aircraft Orders Strengthening Non-defense capital goods orders ex-aircraft were up 1.4 percent in June. Business spending may be more additive to GDP than initially expected. While obviously a volatile series, electrical equipment orders show a sector that is doing well right now. Spending by utilities combined with strong global demand fuel this growth. Wachovia Corporation http://www.wachovia.com Disclaimer: The information and opinions herein are for general information use only. Wachovia Corporation and its affiliates, including Wachovia Bank, N.A., do not guarantee their accuracy or completeness, nor does Wachovia Corporation or any of its affiliates, including Wachovia Bank, N.A., assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Such information and opinions are subject to change without notice, are for general information only and are not intended as an offer or solicitation with respect to the purchase or sales of any security or any foreign exchange transaction, or as personalized investment advice. Securities and foreign exchange transactions are not FDIC-insured, are not bank-guaranteed, and may lose value.