US Durable Goods Orders: Recovery remains uneven – Wells Fargo

The US Durable Goods Orders report for July showed better-than-expected numbers. According to analysts at Wells Fargo, point out core capex orders rose 1.9%, but the recovery remains uneven between investment that complements COVID-life and that which does not. 

Key Quotes: 

“Durable goods orders leapt 11.2% in July amid strength in autos and defense.”

“Nondefense capital goods orders ex-air, or core orders, notched a 1.9% gain as investment spending has begun to recover.”

“Driving the rebound in core capital goods orders has been goods that facilitate life in a socially distant world. Computers and communications orders have surpassed their February levels, while orders for machinery and metals continue to dig out from the hole left by shutdowns and more muted profit outlooks.”