7-27-16
The durable goods orders for the factory sector proved weak for the second straight month in June, down 4.0 percent. Core readings are also lower for the second month, down 0.5 percent, with core capital goods (nondefense ex-aircraft) a bit higher, but only by 0.2 percent. This follows two straight prior declines of 0.5 and 0.9 percent.
The transportation group reported 2.6 percent gain for vehicles. Alas, nearly all other sectors posted declines. Computers are down 9.1 percent in June, communications equipment is down 2.3 percent, and primary metals are down 1.3 percent.
Total orders are down 6.4 percent. Ex-transportation orders are down year-on-year 3.6 percent with core capital goods down 3.7 percent, the 17th decline in 18 months. Shipments of capital goods fell 0.4 percent in June. This is a second straight decrease and does not bode well for the second-quarter GDP report coming out on Friday.
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