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.
“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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