25 Sep 2014
Drop in US durable goods orders reflects volatility in Boeing aircraft orders - ING
FXStreet (Łódź) - According to James Knightley from ING the decline in US durable goods orders by 18.2% in August can be attributed to the volatility in Boeing aircraft orders.
Key quotes
"So stripping out the transportation component we find that orders were up 0.7% MoM."
"There was also good news in the non-defence capital goods orders (excluding aircraft) component, rising 0.6% MoM while July’s figure was revised up 0.3 percentage points."
"This is a positive story as the series tends to be a good lead for where investment spending is heading and therefore suggests that this key component of GDP will continue to make a significant positive contribution to growth."
"On the GDP front, recent revisions to data series suggests that tomorrow’s 2Q final figure will be revised higher, possibly close to 5% from the 4.2% rate previously reported."
"As such, the spare capacity in the US economy continues to shrink which is why we expect the Fed to start tightening policy from April."
Key quotes
"So stripping out the transportation component we find that orders were up 0.7% MoM."
"There was also good news in the non-defence capital goods orders (excluding aircraft) component, rising 0.6% MoM while July’s figure was revised up 0.3 percentage points."
"This is a positive story as the series tends to be a good lead for where investment spending is heading and therefore suggests that this key component of GDP will continue to make a significant positive contribution to growth."
"On the GDP front, recent revisions to data series suggests that tomorrow’s 2Q final figure will be revised higher, possibly close to 5% from the 4.2% rate previously reported."
"As such, the spare capacity in the US economy continues to shrink which is why we expect the Fed to start tightening policy from April."