–Retransmitting, Correcting Headline

By Joshua Newell

WASHINGTON (MNI) U.S. durable goods orders are expected to have
grown slightly in June, illustrating a slow but continued economic
recovery.

In a Market News International survey of economists, orders for
durable goods are forecast to have risen by 0.5%, after jumping 2.1% in
May.

Mike Englund, the chief economist of Action Economics, told Market
News International during a phone interview that the somewhat volatile
transportation sector was the main reason for the monthly increase.

He added that the combination of a slow but steady easing of the
supply chain disruptions in Japan as well as a large boost in airplane
orders to Boeing are pushing the transportation sector forward.

However, he specified that the growth is not solely due to the
transportation sector. Englund said “the mining and factory sectors are
doing well because of a global economy that is growing at a rapid clip.
Many emerging markets are resource hungry, and the U.S. is riding this
global commodity boom.”

Alongside this, however, are indications that domestic demand
remains weak. Retail sales for June grew 0.1%, and the unemployment rate
remains stubbornly high.

Furthermore, a variety of manufacturing indexes showed slow growth
for June, as both the ISM manufacturing and non-manufacturing new orders
indexes stood barely over 50.

The June Philadelphia Fed Survey’s index of current activity
actually fell for the first time in ten months, while the New York Fed’s
Empire index dropped into negative territory for the first time since
November 2010.

Avery Shenfeld, chief economist at CIBC World Markets, reiterated
this view, pointing out that “exports are growing faster than most
recoveries, but the pace of domestic demand has slowed.” He sees some
signs of healing in sectors such as automotives but continues to believe
“there is alot of uncertainty in the economy.”

The June report on durable goods orders report will be released
Wednesday at 8:30 am ET by the Department of Commerce.

–Joshua Newell is a reporter for Need to Know News.

** Market News International Washington Bureau: 202-371-2121 **

[TOPICS: M$U$$$,MAUDS$]