By Mark Pender
NEW YORK (MNI) – MNI’s U.S. capital goods index is little changed
in the Sept. 23 period at 65.3, near the low end of trend but well above
50 to indicate solid growth in year-on-year business conditions,
according to the results of Market News International’s weekly survey
released Monday.
Sales growth, at a year-on-year 9.0%, is the slowest since the
second quarter last year.
Yet given prior strength in orders and backlogs, this sample is
pointing to a fourth straight gain for non-defense capital goods
shipments in Wednesday’s durable goods report for August.
The sample’s income growth remains in the single digits, at +7.0%
for one of slowest readings since the first quarter last year. Sample
size in the latest period is 215 companies.
Guidance from the sample as a whole points to steady year-on-year
growth at current levels through year end for both sales and income.
By industries, aerospace is a standout area of strength for the
sample while electronics is a central area of weakness.
Editor’s Note: MNI compiles its capital goods index based on a
weekly sample of company news and data.
** Market News International New York Newsroom: 212-669-6430 **
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