US durable goods orders come in ahead of expectations

By Francisco Miñana

Date: Wednesday 27 Jun 2012

US durable goods orders rose 1.1 per cent month-on-month and 8.1 per cent year-on-year to 217.15bn dollars in May, according to data from the US Census Bureau.

The reading is better than the 0.4% m/m increase expected by the market and previous month's revised reading of -0.2% (down from +0.2%).

Durable goods orders excluding transportation rose 0.4% monthly and 7.7% on an annual basis. Durable goods orders excluding defence rose 0.7% m/m and 10.2% y/y.

Inventories rose 0.5% to $365.8bn compared to the 0.3% rise in the previous month. Inventories have been rising for 28 of the last 29 months.

Capital goods rose 7.8% monthly to $6.9bn.

"The general durable gooods reading is better than expected although the core figures are slightly worse than expected," said analysts from Digital Look.

"We should keep in mind that this data tends to be volatile. It is also difficult to read into the high inventory levels. Are inventories being restocked or are they building up due to disappointing sales?"

FM

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