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Durable goods orders rise more than expected in July

Aug 25, 2016, 18:00 IST

File photo of worker of German steelmaker ThyssenKrupp controling a blast furnace in DuisburgThomson Reuters

Durable goods orders rose 4.4% in July, according to an advance report from the Department of Commerce.

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Economists had forecast that orders for goods built to last for long rose 3.4% in July, according to Bloomberg. A downward revised print for June showed that orders fell 4.2%.

Excluding transportation orders, which tend to flutter from month to month, orders rose 1.5% (0.4% expected).

And, capital goods orders for nondefence goods excluding aircraft, or core durable goods, rose 1.6% (0.2% estimated).

"The alarming-looking decline in core capital goods orders since late 2014 has been substantially due, in our view, to the rollover in investment in the mining sector," said Ian Shepherdson, chief economist at Pantheon Macroeconomics, in a preview.

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"But the 29% jump in the number of oil rigs in operation, since the mid-May low, makes it clear that the collapse is over. Indeed, it strongly suggests that spending is picking up, rather than flattening off."

More to come ...

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