Durable Goods Fell 1.3% in September

Today’s durable goods report was not a good one. The Commerce Department said that orders for durable goods fell 1.3% last month. Economists were expecting an increase of 0.5%.

Orders for non-defense capital goods excluding aircraft, a proxy for future business investment in items like computers, engines and communications equipment, dropped 1.7 percent, the most since January, after a 0.3 percent gain the previous month.

Shipments of non-defense capital goods, used in calculating gross domestic product, fell 0.2 percent after rising 0.1 percent.

The figures may prompt some economists to cut forecasts for third-quarter GDP. A report later this week is projected to show the world’s largest economy grew at a 3 percent annualized rate from July through September after a 4.6 percent gain in the previous three months that marked the best performance since the end of 2011, according to the median forecast of economists surveyed by Bloomberg.

On Thursday, we’re going to get our first look at Q3 GDP growth. I think the number will be over 3%.

Fortunately, the stock market is up again today. The S&P 500 broke above 1,970 for the first time since October 8. CR Bard ($BCR) is at a new 52-week high today. Fiserv ($FISV) and Moog ($MOG-A) are very close to new ones as well.

Posted by on October 28th, 2014 at 10:59 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.