A huge upside surprise for durable goods orders (+6.5% MoM vs +3.9% MoM) was dominated by a 19% spike in transportation (with non-defense aircraft orders up 131.2% MoM)
Up from $11bn to $25.3bn...
New orders for manufactured durable goods in June increased $14.9
billion or 6.5 percent to $245.6 billion, the U.S. Census Bureau
announced today. This increase, up following two consecutive monthly
decreases, followed a 0.1 percent May decrease.
Excluding transportation, new orders increased 0.2 percent.
Excluding defense, new orders increased 6.7 percent. Transportation
equipment, also up following two consecutive monthly decreases, led the
increase, $14.6 billion or 19.0 percent to $91.6 billion.
However, away from this unsustainable surge in orders, Core Durable Goods Orders disappointed (+0.2% vs +0.4% exp) and Capital Goods New Orders Nondefense Ex Aircraft & Parts fell 0.1% - the biggest drop since Dec 2016.
Let's just hope Boeing can sell a few more planes in July or this picture won't look so rosy.