Economy

June Durable Goods Likely Saved Second-Quarter GDP

Friday’s report on durable goods was one we were paying close attention to. After all, this is the last major broad production and consumption number ahead of the first look at second-quarter gross domestic product (GDP). The report was strong enough that it may have kept fears at bay that economists would start lowering their GDP targets.

Durable goods rose by 0.7% in the month of June for the headline report. Bloomberg had the consensus report as a gain of 0.5%. May was down 0.9% and April was up 0.8%.

The ex-transportation durable goods report also beat estimates at 0.8%, versus the 0.7% consensus estimate from Bloomberg. This was effectively flat in May and up by 0.4% in April.

A key measurement in this Commerce Department report is the business spending climate report, via the orders for nondefense capital goods, ex-aircraft. This measurement often removes the wild parts of the durable goods report, and it aims to show the true underlying broad base of business spending, it rose by 1.4% in June, after being negative in May and April.

The fear going into this durable goods report was that it would hurt second-quarter GDP estimates. That does not appear to be the case, and that first-quarter GDP reading of -2.9% now looks as though it will have been a one-time blip in the recovery that is nearing five years old.

ALSO READ: Ten States With the Fastest Growing Economies

Is Your Money Earning the Best Possible Rate? (Sponsor)

Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.

However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.

There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.