Durable Goods Orders Exceed Expectations Despite Multiple Headwinds

Despite a backdrop of a worsening supply chain crisis and rising material costs, core capital goods orders climbed in August even as unfilled orders stacked up. A sixth straight monthly increase in shipment of core capital goods suggest Q3 GDP will see a boost from equipment spending. More than Just a Boost from Aircraft Durable goods orders grew 1.8% in August, about three times the consensus-expected gain of 0.6%. The increase also comes on the heels of a substantial upward revision that flipped July’s initially reported decline to an increase of 0.5%. A surge in aircraft orders was largely expected and while the more than $7 billion increase in bookings for civilian aircraft provided considerable lift, there were modest gains even after excluding aircraft. Signs of stronger business spending were evident in a 1.3% gain in electrical equipment and a 1.4% gain in computers and communications equipment orders. The fingerprints of the supply chain problems were all over this report.¬†READ FULL ARTICLE>>