CIBC Research discusses its reaction today's US durable goods print for the month of July.
"Orders of durable goods stalled in the US in July, as the strength in the defense aircraft component seen in the prior month was reversed. The reading was well below the 0.8% rise expected by the consensus. However, excluding the volatile transportation component, orders grew by 0.3% (vs. 0.2% consensus), supported by gains in the core capital goods group (ex. defense and aircraft), which is a leading indicator of business investment in equipment," CIBC notes.
"Shipments in the latter group were up by a solid 0.7%, a positive sign for business investment in equipment at the start of the third quarter, however, these figures are reported in nominal terms," CIBC adds.