–Ex Defense +4.8%; Civ Aircraft Orders +43.4% as Boeing Jumps
By Joseph Plocek
WASHINGTON (MNI) – The July durable goods data show rebound from
June’s dip, continuing the seesaw pattern in effect for most of 2011,
but also continuing an uneven up-trend.
July durables orders printed +4.0% but excluding transportation the
gain was a more modest +0.7%. The ex-defense advance was +4.8%. June’s
overall orders were revised to -1.3%.
Boeing Corp. had reported 115 new aircraft orders in July after 48
in June, explaining most of the strength in the government report.
Nondefense aircraft orders were estimated by the Commerce Department at
+43.4% after -24% in June.
Just as one might point out that total orders were up in two of the
last three months, it is as easy to say they were down in half the
periods since February. And in July, underlying orders data were mixed.
Orders for machinery printed -1.5%, computers -3.4%, electronics
-1.8% and defense capital goods -7.8%. Strength away from aircraft was
mostly in primary metals at +10.3% and motor vehicles at +11.5%, areas
that probably reflected the early auto industry change-over to new
models.
Nondefense capital goods shipments advanced 1.2%, suggesting higher
capital spending in the Q3 GDP accounts.
Overall shipments posted +2.5%, and inventories +0.8%, completing
the picture. Rising inventories also could contribute to growth.
**Market News International Washington Bureau: (202)371-2121**
[TOPICS: M$U$$$,MU$$$$,M$$FI$,MT$$$$,MAUDS$]
