US Durable Goods Orders: Autos were in driver’s seat last month – Wells Fargo

Data released on Monday showed Durable Goods Orders rose 7.3% in June. According to analysts at Wells Fargo, explained the data shows activity recovered further last month and added the improvement in core orders was more modest, however, and suggests capital spending is likely to remain weak. 

Key Quotes: 

“Durable goods orders clawed back further ground in June, increasing 7.3%. Orders at motor vehicle manufacturers led the gain (+86%). Autos sales over May and June regained about half the drop-off since the outbreak, although order figures may have been boosted by the industry temporarily making medical equipment.”

“Shipments of nondefense capital goods rose 4.4% in June, but were down at a 37% annualized pace for the quarter and point to a dismal reading for equipment spending in Thursday’s GDP report.”