US Core Capital Goods Orders Rose by 6.8% YoY in June
Today’s US economic data point to a solid growth in business spending on equipment in the second quarter. The US Commerce Department reported, that orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, grew by 0.6% in June. Economists had forecast core capital goods orders increasing by 0.4% last month. On annual basis, core capital goods orders increased by 6.8% yoy.
Overall orders for durable goods increased 1.0% in June as demand for transportation equipment rebounded 2.2%. That followed a 0.3% fall in durable goods orders in May.
Orders for electrical equipment, appliances and components grew by 1.5% in June after slipping 0.5% in May. Orders for computers and electronic products rose 0.6%, while those for machinery gained 0.2%. Orders for primary metals fell 0.4%. Orders for motor vehicles and parts jumped 4.4% last month (the biggest increase since March 2015). Orders for civilian aircraft rose by 4.3% last month.