US Durable Goods Orders Drop In July, ‘Unadjusted’ Motor Vehicles Orders Tumble

US Durable Goods Orders Drop In July, ‘Unadjusted’ Motor Vehicles Orders Tumble

As sentiment towards buying conditions crashes (UMich) in America, analysts expected a modest pull back in durable goods orders in preliminary July data, and they were right, but the 0.1% MoM drop in Durable Goods Orders was less than the -0.3% MoM expected (reflecting a pullback in orders for commercial aircraft).

Source: Bloomberg

And while Ex-Transports, orders beat expectations, we note that Capital Goods Orders non-defense, ex-aircraft (a proxy for business spending) was unchanged in July (after an upward revision from +0.7% to +1.0% MoM in June)…

Source: Bloomberg

This marks a pause in the months-long buildup in capital investment.

It does appear that a fair amount of “seasonal adjustment” is skewing this data dramatically as we note that while Motor Vehicles & Parts were a big driver of the outperformance, on a non-seasonally-adjusted basis, orders tumbled to their lowest since May 2020

Source: Bloomberg

Critically, if one assumes the same decline in SA autos as was recorded in NSA (down $6 billion), the Durable goods orders print would be a 2.3% drop!

Not exactly a great time to be tapering?

Tyler Durden
Wed, 08/25/2021 – 08:40

This post has been republished with permission from a publicly-available RSS feed found on Zero Hedge. The views expressed by the original author(s) do not necessarily reflect the opinions or views of The Libertarian Hub, its owners or administrators. Any images included in the original article belong to and are the sole responsibility of the original author/website. The Libertarian Hub makes no claims of ownership of any imported photos/images and shall not be held liable for any unintended copyright infringement. Submit a DCMA takedown request.

-> Click Here to Read the Original Article <-

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Weekly Newsletter SignupTop Story of the Week

Subscribe to our newsletter to receive a weekly email report of the most popular article on the Libertarian Hub!