U.S. durable goods orders likely to have grown in September

In August, U.S. durable goods orders had risen 2 percent, indicating continued strength in the manufacturing sector and coming above expectations. The rise in orders was led by gains in new aircraft orders that rose 44 percent. However, new orders for nondefense capital goods excluding aircraft was the strongest takeaway from August’s reading, stated Wells Fargo in a research report. The sector had risen 0.9 after rising strongly by 1.1 percent in July.

The core measure was at a 6.4 percent annualized growth rate in the last three months, hinting strength in the capital goods sector. Equipment spending is expected to have remained strong in the third quarter. According to Wells Fargo, durable goods orders are expected to have risen 1 percent in September.

“We expect a gain of 6.9 percent in this component of fixed investment for the quarter, and the positive momentum of the core measure of durable goods orders indicates a strong Q4 as well”, added Wells Fargo.

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