US: Headline durable goods should be quite soft – RBC CM

Research Team at RBC Capital Markets, suggests that the industrial side of the economy has been surprisingly soft and seems likely to remain so.

Key Quotes

“The latest Philly and Empire both printed well below breakeven in ISM-terms, with the former at just 43.7 and the latter at 45.4 in September. This, coupled with softer Boeing orders, suggests that headline durable goods should be quite soft (after a very firm print last month). The weaker manufacturing tone is also consistent with a decline in the capex proxy.”