US Durable Goods Orders: Details disappoint - Wells Fargo
|According to analysts from Wells Fargo, recent softness in orders suggests that the early year surge is fading and that the factory sector will slow.
Key Quotes:
“New orders fell 1.1 percent in May, a larger contraction than the consensus forecast. Excluding defense, new orders decreased 0.6 percent. Transportation, also down two consecutive quarters, drove the decrease, falling 3.4 percent.”
“Inventories increased 0.2 percent in May, and are now up 10 of the last 11 months, suggesting that manufacturers are having trouble adjusting to the weaker pace of orders.
“Nondefense capital goods orders ex-aircraft, a key benchmark for future business spending, decreased 0.2 percent. The gap between the survey data, like the ISM regional surveys, and the relatively weak numbers for core capital spending, remains wide.”
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