World Economy

Jul 25, 2008

Surprise increase orders of durable goods

Orders for durable goods were clearly occasions in June with an increase of 0.8%. It is the largest increase recorded since February and a very good surprise for analysts who were waiting for their part down.

Orders for durable goods to the USA have repeatedly unexpectedly in June.
Orders for durable goods to the USA have repeatedly unexpectedly in June.
Good news on Friday for the markets. Orders for durable goods to the USA have repeatedly unexpectedly in June, showing an increase of 0.8% compared to May. According to the Department of Commerce is the largest increase recorded since February, and it is mostly a surprise for analysts who tablaient for their part on a decrease of 0.3%!

Another source of satisfaction, the figures for May were revised slightly upward to reflect an increase of 0.1% instead of the originally announced stability.

Orders for durable goods have increased especially in the automotive sector, with an increase of 1.8% against a decline of 3.6% in May. This is the first increase since November in the sector and the best performance since July 2007.

The transport sector as a whole, however, shows a decrease of 2.6% of orders (after an increase of 1.9%), due to aviation, where orders for durable goods fell by 25.1% for commercial aircraft (after +6%) and -8.6% for military aircraft (after +14.7%).

Orders were up 2% excluding transportation (after -0.5% in May) and 0.1% excluding defense (after declining by 0.6% in the previous month).

For their part orders excluding defense and aviation field, which give a good measure of the willingness of business investment, rose by 1.4% after a decline of 0.1% in the previous month. This is the strongest rise since April. Orders for military equipment surged by 15.8%, after rising by 14.1% already in the preceding month.

In other sectors, the performance was generally positive. The electrical equipment sector has increased by 5% after an increase of 2% already in May, and machinery tools, saw orders increase by 2.3% (after -3.7%). Orders for crude metals rose by 5.1% and those of metals processed by 1.7%. However, orders fell by 0.5% for the electronics sector (after +2.7%).

Finally, deliveries rose by 0.5% in June after a decline of 1.2% in the previous month. The orders grew by 0.9%, as in May, and inventories increased by 0.5%, as the previous month.

by erectusplus at 7:26 AM |