US Durable Goods Orders: Strong underlying details – Wells Fargo
|Data released on Tuesday showed Durable Goods Orders rose 1.9% in September surpassing expectations. Although aircraft orders lifted the headline figure, underlying details were strong as well with core orders up more than expected, mentioned analysts at Wells Fargo.
Key Quotes:
“Durable goods orders rose 1.9% in September, handily exceeding the 0.5% consensus estimate. Core orders, that exclude volatile components like aircraft and defense spending, also rose 1.0%.”
“Core capital goods shipments rose less than expected in September thus ending the third quarter on a soft note; that bodes poorly for Q4 equipment spending. The solid core orders numbers suggest that the softness in shipments may be short-lived.”
“Investment plans are on the upswing and there may arguably be some pent-up demand for capex since equipment spending peaked a full year before the pandemic.”
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