WASHINGTON (Dow Jones)--Demand for expensive goods unexpectedly rose in June, while a barometer of capital spending by businesses increased, a sign of strength for the struggling manufacturing sector.
Orders for durable goods climbed 0.8% last month to a seasonally adjusted $215.43 billion, the Commerce Department said Friday. Durables, which are manufactured goods designed to last at least three years, increased 0.1% in May; previously, May durables were seen as unchanged.
The report was better than Wall Street expected; economists had forecast a drop of 0.5% for June.
But durable orders have gone up just three times over the past six months, a sign of what the sluggish economy is doing to the manufacturing sector. Demand within the U.S. for expensive goods has been weak, with export markets providing support.
Still, a barometer of business equipment spending - orders for non-defense capital goods excluding aircraft - increased in June by 1.4%, after dipping 0.1% in May. Year over year, the barometer has increased 3.8%, indicating capital spending hasn't collapsed despite an uncertain economic outlook, tight credit conditions, and the soaring commodity prices that have pressured corporate profit margins.
June shipments for non-defense capital goods excluding aircraft rose by 0.7%, after increasing 0.2% in May; the shipments are used in calculating gross domestic product, which is the broad measure of economic activity in the U.S.
Demand during June for durable goods in the transportation sector decreased 2.6%, after climbed by 1.9% in May. Orders for commercial planes plunged 25.1%, while military aircraft orders fell 8.6%.
Motor vehicles and parts climbed by 1.8% last month, likely given a boost by the growing interest in fuel-efficient cars. For the year, orders are down 15.2%, an example of the troubles faced by the industry.
Demand for all durables except transportation goods climbed 2.0% in June. Orders rose 2.3% for machinery, 5.1% for primary metals, 5.0% for electrical equipment, and 1.7% for fabricated metals. Orders fell 0.5% for computers and electronics.
Demand ex-transportation in May had gone 0.5% lower.
June capital goods orders declined by 0.9%. Non-defense capital goods - items meant to last 10 years or longer - decreased by 3.2%.
Defense-related capital goods orders rose 15.8%. Orders for everything except defense goods inched 0.1% higher in June, after falling 0.6% during May.
Durable-goods shipments of manufacturers rose by 0.5% last month. Unfilled orders, a sign of future demand, increased 0.9%. June inventories rose 0.5%.
3 comments:
I've got sell points of:
4.62 AZK
9.46 SWC
for my two lowest lots.
All my AZK's are spaced about .15 apart so i'll book once we reach the next one.
$4.30-$5.09
By Jeff Bater
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--Demand for expensive goods unexpectedly rose in June, while a barometer of capital spending by businesses increased, a sign of strength for the struggling manufacturing sector.
Orders for durable goods climbed 0.8% last month to a seasonally adjusted $215.43 billion, the Commerce Department said Friday. Durables, which are manufactured goods designed to last at least three years, increased 0.1% in May; previously, May durables were seen as unchanged.
The report was better than Wall Street expected; economists had forecast a drop of 0.5% for June.
But durable orders have gone up just three times over the past six months, a sign of what the sluggish economy is doing to the manufacturing sector. Demand within the U.S. for expensive goods has been weak, with export markets providing support.
Still, a barometer of business equipment spending - orders for non-defense capital goods excluding aircraft - increased in June by 1.4%, after dipping 0.1% in May. Year over year, the barometer has increased 3.8%, indicating capital spending hasn't collapsed despite an uncertain economic outlook, tight credit conditions, and the soaring commodity prices that have pressured corporate profit margins.
June shipments for non-defense capital goods excluding aircraft rose by 0.7%, after increasing 0.2% in May; the shipments are used in calculating gross domestic product, which is the broad measure of economic activity in the U.S.
Demand during June for durable goods in the transportation sector decreased 2.6%, after climbed by 1.9% in May. Orders for commercial planes plunged 25.1%, while military aircraft orders fell 8.6%.
Motor vehicles and parts climbed by 1.8% last month, likely given a boost by the growing interest in fuel-efficient cars. For the year, orders are down 15.2%, an example of the troubles faced by the industry.
Demand for all durables except transportation goods climbed 2.0% in June. Orders rose 2.3% for machinery, 5.1% for primary metals, 5.0% for electrical equipment, and 1.7% for fabricated metals. Orders fell 0.5% for computers and electronics.
Demand ex-transportation in May had gone 0.5% lower.
June capital goods orders declined by 0.9%. Non-defense capital goods - items meant to last 10 years or longer - decreased by 3.2%.
Defense-related capital goods orders rose 15.8%. Orders for everything except defense goods inched 0.1% higher in June, after falling 0.6% during May.
Durable-goods shipments of manufacturers rose by 0.5% last month. Unfilled orders, a sign of future demand, increased 0.9%. June inventories rose 0.5%.
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