No durable goods are required in the USA
Orders for durable goods such as aircraft fell a surprising 5.2% in the previous month.
In particular, weak aircraft orders had a negative impact on order growth.
Photo: Monty Ragusen/Getty Images
July saw a significant drop in US industrial orders. Orders for durable goods such as aircraft and machinery fell a surprising 5.2% from the previous month, the Commerce Department said on Thursday. Economists polled by Reuters had expected a 4.0% decline after June’s revised 4.4% gain. Ex-transport orders rose 0.5% in July, after a revised 0.2% in June. Experts had expected just a 0.2% increase last month.
Above all, weak aircraft orders had a negative impact on order development and led to value below expectations, Helaba analyst Ralf Runde said. “However, with a surprisingly high plus recorded from the volatile transport sector and orders for capital goods also rising, economic worries in the US should not increase.” The updated low of 230,000 initial jobless claims “doesn’t completely dispel interest rate expectations related to the US Federal Reserve”.
In a fight against inflation, the US Federal Reserve has raised key interest rates from near zero to 5.25 to 5.50% from early 2022. Monetary watchdogs prefer to leave the decision to hike rates further at the next rate meeting in September depending on available data. Investors now eagerly await the multi-day annual PET Symposium in Jackson Hole. They hope that a speech by Federal Reserve Chairman Jerome Powell, expected on Friday, will provide clues about the further course of monetary policy.
Reuters
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