Wednesday, June 24, 2009

Durable goods better than expected

Surprisingly, May durable goods were not only positive, but they matched April's increase. It appears that inventories of manufactured goods remain at low levels.

  • Durable goods orders increased 1.8% in May from the prior month. We expected a decline of at least -0.7%.
  • We note that shipments were down 2.1%; however, shipments of cores capital goods were up 0.3%. This was the first increase since Dec.

Again, we may have been too pessimistic about this economy. However, we remain cautious.

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