By Utta Von Nuremburg
WASHINGTON (MNI) – Friday’s advance durable goods orders report
from the Commerce Department is expected to show its third monthly
decline in the last four months, reflecting a general slowdown in the
manufacturing sector.
According to a survey of economists by Market News International,
the headline figure for durable goods orders is expected to show a 0.1%
drop.
The forecasts mostly centered on an expected decline in nondefense
aircraft orders, mainly those of Boeing. According to Kim Rupert,
managing director at Action Economics, “Boeing orders are expected to
drop off sharply after benefiting from a large volume of orders in
July.”
Boeing’s July orders contributed to a 75.9% jump in non-defense
aircraft, and led the 0.4% gain in headline orders. Other notable data
from July include a 5.3% jump in motor vehicle and parts orders and a
3.9% rise in communications equipment orders. New orders for non-defense
capital goods — a key gauge for future business investment — were down
2.8% in July.
John Basile, economists at Credit Suisse, noted that the
consistently low readings for durable goods orders suggest a softer
trend in the manufacturing sector heading into the third quarter. ISM
manufacturing data has supported this trend, as the July and August
readings were lower on average than those of the second quarter.
–Utta Von Nuremburg is a Washington reporter with Need to Know News
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: MAUDS$,M$U$$$]
