Durable goods orders for June
- Prior was -2.3% (revised to -2.8%)
- Ex transportation -0.5% vs +0.3% expected
- Prior ex transportation -0.3% (revised to -0.4%)
- Non-defense capital goods orders ex-air +0.2% vs +0.2% exp
- Prior non-defense capital goods orders ex-air -0.4% (revised to -0.5%)
- Capital goods shipments nondefense ex air -0.4% vs +0.4% exp
The important number is non-defense capital goods orders ex-air and it was bang-on expectations so this isn't as bad as the first headline looks. However, the shipments number is soft and that will be a drag on Q2 growth.
Overall, headlines noting the drop in headline durable goods orders was the largest in more than two years are hurting the dollar. I don't think it will last.
It's largely because a 58.8% decline in non-defense aircraft orders, something Boeing had warned about. The rest is largely defense, which is lumpy and doesn't speak to the underlying economy.
