US Durable Goods Orders Surge

Orders for U.S. durable goods rose more than forecast in June, showing a pickup in demand that will help propel manufacturing and the economy in the second half of the year.

Bookings for goods meant to last at least three years increased 4.2 percent, led by transportation equipment, after a revised 5.2 percent gain in May that was bigger than initially reported, the Commerce Department said today in Washington. The median forecast of 79 economists surveyed by Bloomberg called for a 1.4 percent advance. Unfilled orders for big-ticket goods rose the most since December 2007.

Gains in residential real estate and motor vehicle sales are helping make up for weakness in overseas markets and benefiting companies such as Ford Motor Co. (F) and Whirlpool Corp. (WHR) A pickup in business investment amid lean inventories would provide a boost to manufacturing after a first-half slowdown.

“The manufacturing sector seems to be growing, but not particularly strongly,” said David Sloan, senior economist at 4Cast Inc. in New York. “It’s a fairly positive report, though it’s not broad-based.” The figures suggest “there’s a recovery in place.”

Stock-index futures held losses after the figures, with the contract on the Standard & Poor’s 500 Index expiring in September falling 0.3 percent to 1,678.5 at 8:52 a.m. in New York.


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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell