Durable Goods

Orders for Durable Goods, Better Than Expected

by Glenn Busch October 26, 2011
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The other key component of the report that provides more good news is the orders for non-defense capital goods excluding aircraft. This is the key gauge of capital spending for U.S. businesses. Changes in capital spending coincide with business confidence levels. Businesses will only increase their spending if the returns on their investments are there.

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August Durable Goods Better Than Expected & Businesses are Spending

by Glenn Busch September 28, 2011
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The mixed economic reports, some good some bad, continue to roll in with today’s better than expected August Durable Goods Report. It was in August that Europe began to get much worse and the global economy noticeably rolled over, yet U.S. businesses increased their capital spending, a good sign, and durable good orders were down only slightly.

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The Durable Goods Report and Stalled Capital Spending

by Glenn Busch August 24, 2011
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The best thing to do is to strip away defense orders and non-defense aircraft orders to arrive at the capital spending of U.S. businesses. On a seasonally-adjusted basis, capital goods less defense and aircraft is down from $66.9 billion in June to $65.9 billion in July. Compared to May capital goods less defense and aircraft is slightly up.

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Durable Goods & S&P 500 Correlation

by Glenn Busch May 27, 2011
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The S&P 500 and the durable goods report are highly correlated. Have we’ve seen a clear break from the durable goods recent uptrend to change our short-term correction concerns towards recessionary concerns?

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April 2011 Durable Goods Report & Investment Implications

by Glenn Busch May 25, 2011
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The durable goods report is considered an important leading economic indicator because of the clues it provides about future industrial production. However, as mentioned above, the indicator is volatile and fluctuates month-to-month. The trend of the indicator becomes more important. With 2 of the last 3 months showing declines in new orders are we seeing a new negative trend in this indicator?

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September U.S. Durable Goods Report: A Mixed Bag

by Glenn Busch October 28, 2010
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It’s been up 2 of the last 3 months and this last month experienced a 3.3% jump! However, it looks like most of this came from new orders in transportation and most specifically in aircraft orders, both non-defense and defense related. New orders of non-defense related aircraft was up 2.05% and defense related new orders of aircraft was up 30% but defense new orders account for a small slice of the report.

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