US: Durables and Philly Fed point to lower manufacturing growth - Wells Fargo
|Analysts at Wells Fargo, point out that durable goods orders rose in December, as did capital goods shipments which is a plus for growth data but they warn that core capex orders are in trouble.
Key Quotes:
“Durable goods orders rose 1.2% in December, and while that was shy of the 1.7% consensus expectation, an upward revision to November’s increase takes some of the sting out of the miss.”
“Core capital goods orders are a key leading indicator of future business spending trends and this measure is in real trouble. It was down another 0.7% in December and has now fallen in four out of the past five months.”
“The February Philly Fed headline plunged 21.1 points to land in contraction territory. But on an ISM weighted basis, it slipped only 4.9 points and at 4.7 is still consistent with expansion. Taken with the Empire survey,the factory sector still looks to be growing, but at the weakest pace in roughly two years.”
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