US: Factory orders to decline by 0.5% in August - Nomura

Research Team at Nomura, suggests that the US advance estimate on durable goods manufacturing activity was broadly weak in August and the new orders were unchanged and shipments declined by 0.4% m-o-m, which likely led to an unintended increase in inventories.

Key Quotes

“Core capital goods shipments, a good measure of the underlying trend in business investment spending, declined by 0.4% following a downwardly revised decline of 0.7% in July. The upcoming factory orders report will include data on the nondurable goods component, in addition to the final estimates for durable goods orders, shipments, and inventories. Consensus expects factory orders, the sum of durable and nondurable goods orders, to decline by 0.5% in August.”