After surging in June, US durable goods order growth was expected to slow in July (preliminary data) but it notably disappointed with no change from June (vs +0.8% MoM expected), which was revised up from +2.0% MoM to +2.2% MoM. That is the weakest print for durable goods orders since February and YoY growth slowed to just 9.4%
Ex-Transports, durable goods orders rose 0.3% MoM (better than the +0.2% expected)
The value of core capital goods orders, a proxy for investment in equipment that excludes aircraft and military hardware, rose 0.4% after an upwardly revised 0.9% advance.
Bookings for defense aircraft and parts plunged nearly 50% – dragging down the overall durable goods measure – the biggest drop since Nov 2019…
Capital Goods New Orders Nondefense Ex Aircraft & Parts – a proxy for capital expenditure – was up solidly in the early July data (+0.4% MoM vs +0.3% MoM expected)
Of course, all of this data is nominal – not adjusted for inflation – so adjust your euphoria at the ‘economic’ strength accordingly.