Durable Goods Orders Up In September, But Not All Positive

Daily Forex Fundamentals | Written by Wachovia Corporation | Oct 29 08 13:48 GMT |

Durable goods orders surprised on the upside - up 0.8 percent in September, thanks to a large contribution from aircraft orders, but orders for August were revised down a percentage point. Today's report shows business spending was likely soft in the third quarter, though not as soft as many expected. The real weakness is likely to come in Q4. Aircraft Orders Help in September, but August was Weaker A 29.7 percent pop in non-defense aircraft orders helped lift durable goods orders 0.8 percent in September. This gain was offset by a large negative revision to August's number, which was revised from a decline of 4.5 percent to a drop of 5.5 percent. Q3 Business Spending Weak, Q4 Likely to be Worse The collapse in commodity prices manifested itself in another drop in primary and fabricated metals, which decreased 4.5 percent and 0.9 percent, respectively. Non-defense capital goods orders ex-aircraft fell 1.4 percent. This barometer of business spending tells us Q3 wasn't as weak as feared, but it signals a change for the worse in Q4. 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.