US: Expect a solid 1.0% m-o-m increase in durable goods orders - Nomura

Analysts at Nomura expect a solid 1.0% m-o-m increase in US durable goods orders excluding transportation, following a 0.5% increase in August.

Key Quotes

“September industrial production data suggest that production of durable goods increased at a healthy pace. Further, survey-based measures of new orders improved strongly in September, pointing to healthy gains in ex-transportation durable goods orders. On noncore components, September industrial production indicates a decent increase in vehicle assemblies, which points to a steady increase in new orders for motor vehicles and parts.”

“Aircraft manufacturers reported a decent increase in new orders in civilian aircrafts, but after seasonal adjustment, we expect some decline in non-defense aircraft and parts orders following a sharp 44.8% jump in August. For defense aircraft and parts orders, we expect a steady increase. Altogether, we expect a 1.0% m-o-m increase for total durable goods orders.”