U.S. Durable-Goods Orders Climb on Higher Military Spending
Durable-goods orders minus defense actually fell 0.7% last month, the government said. In a more positive sign, so-called core orders jumped 0.9%.
That figure omits defense and transportation and is a proxy for broader business investment.Yet overall business investment remains weak, and conditions aren’t expected to improve much any time soon. Companies have curtailed investment since last year in response to rising interest rates and higher odds of recession.
Orders for commercial planes sank 16% in August. Auto dealers reported a 0.3% increase. Omitting those two dominant industries,orders minus transportation rose a modest 0.4%. Bookings increased for metal parts, machinery, computers, and electrical equipment.
The big uptick in core orders was somewhat of a surprise, butit remains to see if the increase is sustained. These orders give a better idea of the true condition of U.S. manufacturing since demand for planes and autos can zig-zag month to month.
Source: MarketWatch, 09.27.2023
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