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Economy

Durable Goods Gain of 22.6% Only Huge in the Headline

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By Chris Lange Published
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A350_XWB
Courtesy EADS/Airbus
Durable goods orders for July were reported Tuesday morning. Regardless of the headlines, this is one of the most volatile readings from month to month. The July reading for durable goods orders is 22.6%, a huge increase from the June reading of 0.7% (which was revised up to 2.7%). If the headline number sounds shocking, there is a reason — this was the highest reading in about 20 years. Still, do not let the headline number fool you.

To prove just how volatile this economic report is, Dow Jones had a target of 7.5% while Bloomberg’s estimate was 5.1%. The range given by Bloomberg was -1.0% to 24.5%.

This gain is heavily influenced by aircraft and transportation. After looking beyond the first headline, the ex-transportation durable goods figure was down by 0.8%. June’s reading of a 0.8% gain was revised up to a gain of 3.0%. The total durable goods reading was $300.1 billion in July.

The crux of the durable goods is measured by nondefense capital goods ex-aircraft. This is considered the core reading for the rest of the economy, and it came in a drop with a reading of -0.5% in July.

READ ALSO: Yellen’s Rate Hike Meatball: Other Fed Presidents vs. Fed Funds Futures

Photo of Chris Lange
About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.

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