By Bryan Mena
Orders for long-lasting goods rose last month, reflecting a pickup in demand despite other signs pointing to a cooling economy.
New orders for durable goods–products meant to last at least three years–rose 1.9% in June to a seasonally adjusted $272.6 billion, the Commerce Department said Wednesday. The increase was seen across most categories, including motor vehicles and military aircraft. Excluding defence, orders were up a more modest 0.4%.
Overall orders for durable goods–which include factory equipment, computers and washing machines–increased in eight of the past nine months through June, indicating continued solid demand from businesses and consumers.
But more broadly, the US economic momentum has shown signs of easing this year after robust growth in 2021.
Economists surveyed by The Wall Street Journal estimate the economic output expanded at a 0.3% annual rate in the April through June quarter, after gross domestic product contracted at a 1.6% annual rate in the first quarter. Second-quarter GDP data will be released Thursday.
A closely watched proxy for business investment–new orders for nondefense capital goods excluding aircraft–rose 0.5% to $73.9 billion in June compared with the previous month, the Commerce Department said Wednesday. In the first half of the year, so-called core capital goods orders were up 10.1%, versus the same period in 2021.
Write to Bryan Mena at [email protected]
Credit: www.marketwatch.com /