June Durable Goods Orders Climb 2.1%

[ProgressiveOne]

WASHINGTON (Reuters) - New orders for costly manufactured goods shot up at the fastest rate in five months during June, led by a surge in demand for new aircraft and cars, the Commerce Department said Friday.

Orders for long-lasting durable goods climbed 2.1 percent to a seasonally adjusted $172.5 billion last month after being flat in May.

The surprisingly robust pickup in June surpassed Wall Street economists' forecasts for a 1.0 percent increase and implied a recovering industrial sector, which could help push a faster second-half economic expansion.

More convenient economic news.


Link: June durable good orders climb 2.1%

[sfecap]

1. New aircraft???

Show me ONE airline that is ordering new aircraft (from an American manufacturer.)

[CafeToad]

2. Yes but,

buried in the 'fine print'

The monthly durables report is notably volatile among the government's offerings of business statistics and has sometimes been sharply revised in subsequent months.

Let's see what the 'sharply revised' figure turns out to be before getting too excited . . .

[CMT]

3. don't be surprised if the economy begins to pick up

also the rebate checks will be sent out and it could also lead to a short term boom. The question is it will peter out like the other times it seemed like things were picking up?

[dbt]

4. Notice how it's always "highest levels in five months?"

Or other short-term comparisons? It will be significant when the stats can be headlined like this:

Durable Goods Orders At Highest Level Since Second Clinton Term.

THAT's when I'll believe "the economic recovery has begun."

(where is the damned flipoff icon????)
dbt

[Nottingham]

5. I don't believe this!

:bounce:

[Yavin4]

6. A Simple Explanation

State Government budgets were enacted by June 30th, so bulk orders for things like state cars, computers for state offices, school repairs, etc. were budgeted for and approved. Hence, the jump in durable goods.

With all of these economic stats, you have to look over the long term and factor in all data together. A one-month surge is meaningless, except for the TV finance gurus who manipulate this kind of data to get suckers to buy stocks.