–Ex Defense -1.8%; Civ Aircraft Orders -28.9% Despite Boeing Jump
By Joseph Plocek
WASHINGTON (MNI) – The June durable goods data show a mixed picture
rather than the surprise weakness in the overall print of the
below-expectations -2.1%.
June durable goods orders are now down in two of the last three
months, but could rebound ahead due to aircraft orders and auto sector
retooling.
Ex-transportation orders were just +0.1% after +0.7% in May,
showing only modest moves away from autos (-1.4%) and nondefense
aircraft & parts (-28.9%). Boeing Corp. reported 48 new orders, almost
double the 27 in May, and the record American Airlines orders should
soon show, so the aircraft portion is suspect.
Ex-defense orders printed -1.8% and also is down in two of the
last three months. June also had weakness in machinery orders at -2.3%.
But other broad areas advanced: primary metals printed +1.0%,
computers and related products +0.2% (on +15.2% in communications
equipment — a sub-category that includes peripherals and software), and
electronics +0.4%. So the report was more mixed than the surprise
headline.
Overall shipments posted +0.5%, and inventories +0.4%, completing
the picture.
Nondefense capital goods shipments were up 1.1% in June and remain
higher in Q2, suggesting growth in business spending. Defense capital
goods shipments seem to be on a declining trend despite the wars
overseas.
**Market News International Washington Bureau: (202)371-2121**
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