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Economy

Surprising Durability In Durable Goods

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By Douglas A. McIntyre Updated Published
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Money Stack ImageThe report for May’s Durable Goods came in better than expected at +1.8%, and that is still up at +1.1% when you remove transportation from the report.  Even on an ex-Defense orders basis it was +1.4%.  Dow Jones had a consensus estimate of -0.8% on the headline data.  The Commerce Department data said the seasonal adjustment was $163.9 billion in sales.

While estimates were -0.8%, we were looking for a flat reading. This is much better than that.  For whatever it is worth, we would still remind you that the durable goods orders is perhaps the most volatile of all economic components.

We are still seeing a lower inventory reading, and the future demand measured by unfilled orders was down at -0.3%.

One other issue to consider here is that there was a large boost in the orders for commercial planes, while autos and parts were down by about 8%.  Non-Defense capital goods were up 10%.

This has helped futures.  DJIA futures were up close to 50 points before the data, and they are now up close to 80 points.

Jon C. Ogg
June 24, 2009

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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