US: Durable goods orders to post a flat reading in July - Nomura

Analysts at Nomura expect the US durable goods orders excluding transportation to increase solidly by 0.5% m-o-m in July following a modest 0.2% gain in June.

Key Quotes

“Industrial production for this category increased steadily during the month, up 0.4% m-o-m. In addition, the new orders subindex in the ISM manufacturing survey remained elevated.”

“A solid gain in ex-transportation durable goods orders in July would be consistent with the firm economic momentum seen so far to start off Q3. For overall durable goods orders, we expect a flat reading during July, likely weighed down by a decline in orders for civilian aircraft and parts.”