Durable Goods Orders Unexpectedly Bounced In August, But…

Thanks to a large downward revision for July (from -5.2% MoM to -5.6% MoM – the largest drop since the COVID lockdowns), preliminary August durable goods orders rose a marginal 0.2% MoM (vs -0.5% MoM exp).

Source: Bloomberg

Looking under the covers, we find more noise in this time series with orders ex-transports rose 0.4% MoM (+0.2% MoM exp), thanks to a big downward revision in July (+0.4% to +0.1%).

Additionally, we note that the value of core capital goods orders, a proxy for investment in equipment that excludes aircraft and military hardware, soared 0.9% last month after a revised 0.4% decline in July.

Core Capital Goods Orders have been downwardly revised  5 of the last 6 months…

Finally, as a reminder, this series in in nominal dollars…