U.S. Durable Goods Orders Fell 7.3% in July as Europe, Federal Cuts Pressure Expansion
Orders for U.S. goods made to last at least three years slipped more than expected in July following three months of gains, a metric that might hamper the recent rebound in manufacturing.
Durable goods orders fell 7.3 percent in in July, more than reversing a 3.9 percent gain recorded for June and the largest one-month drop since August 2012. The Street was looking for a fall closer to 4 percent.
Key contributors to the drop include overseas markets continuing to struggle, while federal spending cuts are also taking a toll on the manufacturing segment.
Excluding transportation, durable order fell 0.6 percent, from a 0.1 percent gain the prior period and expectations of a 0.1 percent drop.
The largest moves lower include bookings for commercial aircraft (down 52.3 percent) and military equipment (down 21.7 percent). Non-defense capital goods demand fel 3.3 percent in July.
Manufacturing makes up about 12 percent of U.S. GDP. Markets are up at the start Monday.
Durable goods orders fell 7.3 percent in in July, more than reversing a 3.9 percent gain recorded for June and the largest one-month drop since August 2012. The Street was looking for a fall closer to 4 percent.
Key contributors to the drop include overseas markets continuing to struggle, while federal spending cuts are also taking a toll on the manufacturing segment.
Excluding transportation, durable order fell 0.6 percent, from a 0.1 percent gain the prior period and expectations of a 0.1 percent drop.
The largest moves lower include bookings for commercial aircraft (down 52.3 percent) and military equipment (down 21.7 percent). Non-defense capital goods demand fel 3.3 percent in July.
Manufacturing makes up about 12 percent of U.S. GDP. Markets are up at the start Monday.
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