Factory Orders Rebound Strongly in July

Despite Manufacturing PMIs sliding, US Factory orders were expected to rebound from a two-month decline in July (the latest data reported today) and rebound they did, rising 0.9% MoM (more than the expected 0.7% increase) with June’s 0.3% decline revised up to a 0.2% decline…

That is the best monthly rise since April, lifting orders up 9.9% YoY – the second best annual gain since Oct 2022!

Core Factory orders rose 0.6% MoM (significantly better than the expected 0.4% rise)…

That is the 8th rise in Core Orders in the last nine months with annual growth holding above 9% YoY.

And no, it wasn’t all war spending as Ex-Defense, orders still rose 0.98% MoM and 8.79% YoY…

The final July headline and core durable goods order printed the same as the preliminary data (+1.1% MoM and +0.4% MoM respectively)

Headline durable goods orders are up 13.0% YoY!

But Orders and Shipments for Non-Defense, Ex-Aircraft Capital Goods fell notably from their preliminary levels (0.0% MoM vs 0.3% exp and +1.2% vs +1.4% exp respectively).

Hard to argue the economy is in trouble based on this data BUT this is July… so very stale.