The surge in durable goods orders in the US doesn't tell the entire story - but it's good news nonetheless

The surge in durable goods orders in the US doesn't tell the entire story - but it's good news nonetheless. Orders for big-ticket items soared in July by 22.6%, the biggest increase since 1992 (since durable goods were first published on a monthly basis). The jump was driven by a barrage of new orders for civilian aircraft. Orders for new aircraft aren't necessarily a good gauge of economic activity as they tend to happen in bursts and have a very long production and delivery cycle. Meanwhile, minus transportation orders, durable goods actually declined 0.8% in July. However, June's number was revised up to 3% which keeps the solid upward trend intact (up five of the last six months). (VIEW LINK)