US: Headline durable goods orders likely to show a little more momentum - Westpac

Research Team at Westpac, is looking for a near flat but positive core outcome of durable goods orders at around 0.3% and headline orders are however likely to show a little more momentum, +1.5%, on aircraft demand.  

Key Quotes

 “Weakness in business investment has become an entrenched theme in the US economy over the past two years. Growth in total business investment has slowed from a peak pace near 8%yr in Q3 2014 to –1.2%yr at Q3 2016. The deterioration has been broad based across structures and equipment.”

“In recent months, durable goods orders and shipments have remained weak, implying that (at least for equipment spending), the absence of investment is set to persist. The average change in core orders (ex defence and aircraft) through Q3 was a gain of just 0.2% per month – though that is a modest improvement from Q2's –0.4%.”