US factory orders for the month of July 0.9% versus 0.6% expected

The useful part

Last month 0.3% Durable goods ex transportation 0.4% versus 0.4% preliminary. Last month 1.1% Durable goods nondefense capital ex air 0.0% versus 0.2% preliminary. This is the broad measure of orders for manufactured products, including long-lasting goods such as machinery and shorter-lived goods such as food and clothing.

How it works

• More orders generally mean more work ahead for factories, supporting production, employment and economic growth.
• Removing military orders shows that the increase was not dependent on defense spending.
• However, this category still includes commercial aircraft, so it can be volatile.
• Last month 1.7% The July report shows stronger overall demand for U.S.
• manufactured goods, but a softer signal for business investment.

What to take from it

These are products designed to last at least three years, such as vehicles, appliances and machinery. The increase suggests customers are still willing to commit to bigger purchases.

Details worth keeping

Durable goods for July 1.1% versus 1.1% preliminary. Last month 0.5% Durable goods ex defense 1.3% versus 1.3% preliminary. However, expensive aircraft orders can cause large monthly swings.