Sustained Orders Pick-Up Points to Upside for Q2 Equipment Spending

Economics Group of Wells Fargo Bank, N.A. Summary We may not be out of the woods yet, but back-to-back gains in core capital goods orders and a third straight monthly increase in orders for durable goods more broadly points to a potential bottoming out in spending and upside for second quarter equipment spending. One Fine May Orders for durable goods notched a third straight monthly gain in May. While the 1.7% outturn was certainly better than expected, on balance, there were some mixed signals. Core capital goods shipments came in a little soft and orders for the same category exceeded expectations for May but did so after a downward revision to April data. Aircraft provided a lift to capital goods and helped shore up Q2 equipment spending. READ FULL ARTICLE >>