Aircraft orders in August likely to have weighed on U.S. durable goods

Aircraft orders are expected to have been a drag on the U.S. headline durable goods orders in August. In the previous month, aircraft orders had boosted the headline figure. Boeing has reported that orders in August have dropped to 22 from the previous month’s 73. The value of those orders is estimated to have dropped by about USD 4 billion in August, said Societe Generale in a research report.

Apart from the volatile aircraft category, the underlying details are expected to have indicated a tepid increase in capital spending. Admittedly, order excluding transportation might have dropped 0.5 percent. In the meantime, non-defense capital goods orders, stripping aircraft, a proxy for business investment, might have increased 0.2 percent in August, slowing down from a rise of 1.5 percent in June, according to Societe Generale.