- The May reading was +3.6% (revised to +5.2%)
- Capital goods orders non-defense excluding air +0.7% vs 0.6% expected
- Prior capital goods orders non-defense excluding air revised to +2.2% from +1.1%
- Ex-transportation 0.0% vs +0.5% expected
- Capital goods shipments non-defense ex-air -0.9% vs +1.1% expected
Not nearly as strong as the headline suggests but the revisions make for a strong report overall. The core orders number (bolded) is near expectations as a big jump in the volatile transport component skewed the data. The bad news is shipments were very weak and that points to a poor end to Q2 and likely downgrades to GDP forecasts. The first reading on Q2 GDP is next Thursday. The upshot is that strong orders will contribute to a jump in Q3 GDP.
Durable goods orders
