Analysts at Nomura offered a review of the US data and their GDP tracking update.
Key Quotes:
“Factory orders:
The May factory orders report included positive upward revisions to new orders of durable goods ex-transportation from a 0.3% m-o-m decline to no change. However, revisions to shipments and orders of “core” capital goods (nondefense excluding civilian aircraft) were mixed. Core capital goods shipments and orders were revised up for May but revised down for April.
GDP tracking update:
The revisions in the May factory orders report were, on net, negative for Q2 equipment investment. In addition, manufacturers’ inventory investment was revised down for April and May, suggesting less inventory buildup for the quarter. After rounding, however, our Q2 real GDP tracking estimate remains unchanged at 4.6% q-o-q saar.”
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