Core Durable Goods Orders Disappoint In August

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by Tyler Durden
Monday, Sep 27, 2021 - 08:38 AM

After July's disappointing dip, US Durable Goods Orders were expected to rebound in early August data released today, and rebound they did with a big 1.8% MoM bounce (vs +0.7% expected), and July's 0.1% drop was revised up to a 0.5% MoM rise..

Source: Bloomberg

That is the 4th straight monthly improvement in the headline durable goods orders print, and pushes it back above pre-COVID levels...

Source: Bloomberg

However, core durable goods (Ex Transports) disappointed, rising only 0.2% MoM vs +0.5% MoM expected - the weakest since February...

Source: Bloomberg

The headline print's beat was dominated by a 77% surge in non-defense aircraft and parts new orders.

That lifts the highest level for non-defense aircraft and parts new orders since Oct 2019...

So, it's a Goldilocks number - enough in there to support "growth/recovery" thesis, with outliers that defend the "no need to taper/hike rates too soon" narrative.