US: Focus on factory orders – Nomura

Analysts at Nomura point out that the US Census Bureau’s advance estimates suggest that new orders for durable goods excluding transportation equipment increased at a solid pace (0.9% m-o-m) in April, consistent with their view that Q2 momentum is picking up.

Key Quotes

“Orders and shipments of nondefense capital goods excluding aircraft also rose robustly, suggesting that business spending on equipment remains firm despite recent concerns over US trade policy. However, as trade uncertainty lingers, risk remains that businesses will respond negatively to a material escalation in trade tensions.”