US: Durable goods orders likely to dip 1.0% in May - TDS

Analysts at TD Securities are expecting the US durable goods orders to dip -1.0% m/m in May, following a larger 2.1% drop in April.

Key Quotes

“Another notable decline in the highly volatile nondefense aircraft segment (driven by ongoing Boeing woes) should continue to drag the headline measure lower despite an expected improvement in auto sales at 2% m/m. We have a mixed view on the core measures: we pencil in a 0.1% m/m retreat in the durable goods ex-transportation segment, while expecting a 0.2% bounce in core capex orders following its 1.0% drop in April.”