Durable Goods Orders Surge 22.6% in July, but Don't Get Fooled

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Durable Goods Orders Surge 22.6% in July, but Don't Get Fooled

Durable Goods Orders Surge 22.6% in July, but Don't Get Fooled
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Durable Goods Orders Surge 22.6% in July, but Don't Get Fooled

by TheStreet 1:06 mins

Durable goods orders surged to a record high in July, up nearly 23% from the month before, the biggest jump since the government started tracking the data in 1992. Wall Street expected a gain of 7.5%, but thanks to machinery and aircraft orders, the number came out three times higher. Airplane maker Boeing had 324 jet orders alone, tripling the orders from a year earlier. However, orders for industrial equipment and commercial jets rarely translate into immediate economic spike because of the long production timeline. Areas outside heavy machinery showed weakness. When you strip out transportation, orders fell almost 1% though the month before was revised up to 3%. That implies softer spending and might foreshadow a slow second half of the year. Market is therefore not reacting. U.S. treasuries, which usually would move on a number worth celebrating, remain unchanged across the curve.

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