Due to the emergence of a large number of new contracts for Boeing aircraft, durable goods orders in the United States exceeded expectations in June.
Due to the emergence of a large number of new contracts for Boeing aircraft, durable goods orders in the United States have increased for the fourth consecutive month, and commercial equipment orders have unexpectedly increased for the third consecutive month, indicating that despite the aggressive interest rate hikes by the Federal Reserve, business investment is still better than expected.
On July 27, local time, data released by the U.S. Department of Commerce showed that durable goods orders for June increased by an initial value of 4.7% compared to the previous month, far exceeding the expected 1.3%, and marking the largest increase since December 2022. The previous value was revised upward from 1.8% to 2%.
However, when excluding the volatile transportation category, durable goods orders increased by only 0.6% compared to the previous month, higher than the expected 0.1%, but lower than the previous value of 0.7%, mainly due to a surge of 69.6% in non-defense aircraft orders in June.
Core capital goods orders (equipment investment excluding aircraft and defense hardware) increased by 0.2% compared to the previous month, higher than the expected -0.1%, marking the third consecutive month of growth. The previous value was revised downward from 0.7% to 0.5%.
At the same time, data released also showed that U.S. GDP growth in the second quarter exceeded expectations, indicating that the threat of an economic recession has receded in the short term. The growth in consumer spending and non-residential fixed investment drove the economic growth in the second quarter.