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The U.S. Census Bureau reported that new orders for manufactured durable goods increased 0.8% to $257.6 billion in June. This increase follows a 3.2% increase in May, and it has seen an increase thirteen of the last fourteen months. Transportation equipment increased by 1.1% following two consecutive monthly decreases. Nondefense new orders for capital goods increased 3.1% to $88.9 billion in June. Shipments of manufactured durable goods increased 1.0% in June. Unfilled orders for manufactured durable goods increased 0.9% to $1,223.0 billion. Inventories of manufactured durable goods increased 0.9% to $450.5 billion. Total durable-goods orders are up 2.3% from a year ago.
The Conference Board’s Consumer Confidence Index was relatively unchanged in July, after gains in each of the last 5 months. The Present Situation Index, which is based on consumers’ sentiment of current business conditions and the labor market, improved to 160.3, up from 159.6 in June. The proportion of consumers planning to purchase homes, automobiles, and major appliances all rose. The Expectations Index, which measures consumers’ short-term outlook for income, business, and the job market was unchanged at 108.4 compared to last month where it was at 108.5. The share of consumers that indicated jobs were plentiful increased to 54.9%, up slightly from June’s 54.7%. The share of consumers who said jobs were hard to get was unchanged at 10.5%. The percentage of consumers who said business conditions are “good” increased to 26.4%, up from 25.2% last month.
The Bureau of Economic Analysis’ advance estimate on second quarter gross domestic product (GDP) growth reported an economy expanding at an annual rate of 6.5%, up from 6.3 % in the 1st quarter. Increases in personal consumption expenditures (PCE), nonresidential fixed investment, exports, and state and local government spending were partially offset by decreases in private inventory investment, residential fixed investment, and federal government spending. PCE was driven by an upswing in services specifically by food services and accommodations and nondurable goods, specifically pharmaceutical products. The increase in nonresidential fixed investment was seen in equipment led by transportation equipment and intellectual property products, led by research and development. The decrease in private inventory investment was mainly due to a decrease in retail trade inventories.
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