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27.07.2016 12:36

Durable goods orders in US fall 4% in June

According to Bloomberg, the median forecast of economists surveyed estimated orders for all durable goods would fall 1.4 percent, with projections ranging from a 5 percent drop to a 2 percent increase. The gain in orders for non-defense capital goods excluding aircraft -- a proxy for business investment -- matched the median estimate.

"Decision-makers are reluctant to spend on equipment," Kevin Cummins, an economist at RBS Securities Inc. in Stamford, Connecticut, said before the report. "That's certainly one thing that has remained pretty weak and lackluster throughout the recovery."

Shipments of non-military capital goods excluding aircraft, which are used to calculate gross domestic product, decreased 0.4 percent in June after falling 0.5 percent the month before.

Companies placed more orders for electrical equipment and appliances in June than they have all year and demand rose for motor vehicles. Still, bookings weakened for metals, machinery, computers and communications equipment.

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