US Durable Goods Orders Smash Expectations In July Thanks To 'War'

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by Tyler Durden
Wednesday, Aug 26, 2020 - 08:38 AM

After its initial spike back in May, Durable Goods Orders rebound has slowed and that deceleration of the 'V' was expected to continue in today's preliminary July data, but instead saw a resurgence... rising 11.2% MoM (against expectations of a 4.7% rise).

Source: Bloomberg

Year-over-year, durable goods orders remain down 5.0%, but the "V" is filling in fast...

Source: Bloomberg

The headline beat was driven by a surge in defense orders and continued rebound in auto demand...

Additionally, core capital goods orders, a category that excludes aircraft and military hardware and is seen as a barometer of business investment, rose 1.9%, slightly more than forecast.