August’s significant slowdown in the rebound of US Durable Goods Orders was expected to continue in early September data, but instead the Census Bureau printed a big surprise beat, rising 1.9% MoM (against +0.5% exp).
However, headline durable goods orders remain (marginally) lower on a YoY basis (-0.4%) and below February’s pre-COVID levels…
Core capital goods orders, a barometer for business investment which excludes aircraft and military categories, rose 1% in September, also more than forecast, after an upwardly revised 2.1% advance a month earlier.
Finally, we note that there is a significant rise in inventories relative to shipments across many sectors…
If you build it, they will come? They better!!