Today’s data showed an increase in US Durable Goods Orders in September, above expectations. Analysts at Wells Fargo, point out that orders for defense aircraft more than doubled lifting overall durable goods orders 0.8% and defying expectations for a pullback.
“The 119.1% pop in defense aircraft orders was a stand-alone in terms of the huge gain. The second-largest gain in a major category was transportation orders, which rose only 1.9%. After a modest decline in August, motor vehicle and parts orders notched a 1.3% gain in September. This jibes with an increase in motor vehicle sales to dealers, which hit an annualized pace of 17.4 million in September, tying the fastest pace of the year.”
“While the trends are still firmly positive, the indications about business spending were soft in today’s report. Aside from the surge in defense spending other than aircraft, capital goods orders slipped 0.1% in September, the second straight monthly decline.”