MNI DATA IMPACT: US July Durable Orders Up 2.1% On Transport>

--July New Orders Excluding Transportation Down 0.4%

By Brooke Migdon

     WASHINGTON (MNI) - Durable goods orders rose more than 

expected in July, posting a 2.1% surge compared with a 1.0% increase 

expected by an MNI survey of analysts. 

     While July durable goods came in stronger than expected, June 

durable goods were revised down to a 1.8% increase from a previously 

reported 2.0% gain. 

     In contrast, excluding transportation, new orders were down 0.4% in 

the month, below the flat reading expected by MNI. All the major 

subcategories posted gains in the month.  

     Here are some of the other key takeaways from the data released 

Thursday: 

     - The durable goods orders increase was largely due to a 7.0% jump 

in transportation orders, particularly a 47.8% increase in nondefense 

aircraft orders. Boeing orders, which the subcategory is closely tied 

to, jumped in July, climbing to 31 orders from 9 orders in June. 

However, Boeing's 737 Max remains grounded, adding some uncertainty to 

the performance of aircraft orders in the near future.    

     - Durables shipments declined by 1.1%, but inventories increased 

by 0.4% and unfilled orders rose by 0.1%.

     - Nondefense capital goods new orders were up 5.0% in July, and saw 

a 0.4% gain excluding aircraft. Nondefense capital goods shipments were 

down 3.0% in the month, while shipments ex. aircraft were down 0.7%. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]