Durable goods orders is stronger than expected
- Prior month 0.4% (was expecting 0.6%). Prior month revised 0.3%
- Durable goods orders 1.0% versus expectations of 0.4%. The durable goods have been up seven the last eight months.
- Ex transportation 0.5% versus estimate of 0.0%. Prior month -0.5% revised to -0.9%
- Ex defense 0.8% versus last month 1.4%. Prior month unchanged at 1.4%
- Nondefense capital ex air 0.7% versus estimate of 0.0%. Prior month -0.7% revised to -0.8%
- shipments of manufacturing durable goods (up 17 the last 18 months) increased by 0.4% following a 0.3% gain in September. Machinery led the gain with an increase of 1.3%
- Unfilled orders for durable goods rose by 0.6%. That is the 26 consecutive month increase. Transportation equipment led the gain with a 1.0% increase (21st consecutive monthly increase). The backlog of orders continues
- inventories (up 21 consecutive months) rose by 0.2% (up 0.2% September). Machinery (up 24 consecutive months) rose 1.1%
Overall the data was a stronger than expectations. It is a preliminary report, the final report will be released in conjunction with the factory orders in a week or so. It does not change the view of the Fed who is intent on getting policy to more restrictive territory to snuff out inflation.