US: Total durable goods orders declined by 2.2% in August - Nomura

Research Team at Nomura, notes that the US durable goods orders increased strongly in July, as demand for manufactured goods was better for most durable goods categories.

Key Quotes

“A 10.5% increase in transportation orders highlighted the broad-based gains reversing much of slowdown in the prior month. We do not think the strong gains in July were sustained through August, as the August ISM manufacturing survey showed a sharp drop in the new orders index and durable goods production excluding transportation fell in August. Furthermore, incoming data on orders for nondefense aircrafts and parts imply a strong negative reversal after a whopping 90% m-o-m increase in July. Using our bottom-up approach, we forecast that durable goods orders excluding transportation declined 1.5% and total durable goods orders declined by 2.2% in August.”