US Durable Goods Orders: Stabilization in manufacturing production - Wells Fargo

Analysts from Wells Fargo, point out that the US August Durable Goods Orders report reflects stabilization in manufacturing production.

Key Quotes:

“Durable goods orders were flat in August, compared to an expectation of a 1.5 percent decline, after the strong print in July was revised down. The result still reflects stabilization in manufacturing production.”

“After a downwardly revised print of 3.6 percent in July, new orders of durable goods remained flat in August. Excluding transportation, orders declined by 0.4 percent and were down 1.0 percent if we exclude defense goods orders.

“As was the case in July, defense capital goods orders helped the headline number. Overall capital goods orders were down 1.0 percent, while nondefense capital goods orders fell 4.4 percent.

“After increasing 8.9 percent in July, transportation orders increased 0.6 percent with a 0.7 percent increase in vehicle and parts orders. Meanwhile, transportation shipments were down 1.1 percent with most of the decline due to a 7.8 percent drop in non-defense aircrafts after an increase of 1.1 percent in July.”