According to analysts at Nomura, the US durable goods orders excluding volatile transportation components likely advanced a solid 0.5% m-o-m in September after a flat reading in August.
Key Quotes
“Industrial production of durable goods excluding transportation increased healthily by 0.3% m-o-m in September while the new orders subindex in the September ISM manufacturing survey remained elevated at 61.8, albeit slightly lower than the August reading. However, we expect total durable goods orders to fall 0.9% mo-m due to an expected sharp decline in civilian aircraft orders.”
“September’s report will help us evaluate the trajectory of business equipment investment: orders for core capital goods (nondefense excluding aircraft) in August declined 0.2% m-o-m, indicating some near term risk to our business equipment outlook if the weakness persists in September.”
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