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Today, Bloomberg.com reported:
Orders for U.S. durable goods, excluding automobiles and aircraft, unexpectedly gained in June, signaling that manufacturing may expand in the second half of the year.
Excluding transportation equipment, orders for goods meant to last several years climbed 1.1 percent, the most in four months, the Commerce Department said today in Washington...
The durable-goods figures used to calculate economic growth indicate that companies plan to boost investment in coming months, adding to evidence the worst recession in five decades was starting to ease.
At the same time, CNBC reported:
New orders for long-lasting U.S. manufactured goods fell more sharply than expected in June, notching their biggest decline in five months as demand for communications and transportation equipment slumped, a government report showed on Wednesday...
"Durable goods doesn't look positive ... it's no turning point in terms of momentum, and markets have reacted neither positively or negatively," said Sebastien Galy, senior currency strategist at BNP Paribas in New York.
The contrasting emphasis in the two reports highlights the need to look beyond headlines and news summaries. When it comes to the durable goods data, the latest report really reflects what is more often than not par for the course toward the end of a recession. In such cases, a rise in durable goods orders usually starts in sectors, it is not pervasive throughout manufacturing. In addition, during shallow recoveries, as could unfold in the months ahead, different manufacturing sectors can experience different outcomes for an extended period. In short, a growing economy, especially if the growth is weak and secular changes may be underway, may not necessarily lift all boats immediately so to speak.
Orders for U.S. durable goods, excluding automobiles and aircraft, unexpectedly gained in June, signaling that manufacturing may expand in the second half of the year.
Excluding transportation equipment, orders for goods meant to last several years climbed 1.1 percent, the most in four months, the Commerce Department said today in Washington...
The durable-goods figures used to calculate economic growth indicate that companies plan to boost investment in coming months, adding to evidence the worst recession in five decades was starting to ease.
At the same time, CNBC reported:
New orders for long-lasting U.S. manufactured goods fell more sharply than expected in June, notching their biggest decline in five months as demand for communications and transportation equipment slumped, a government report showed on Wednesday...
"Durable goods doesn't look positive ... it's no turning point in terms of momentum, and markets have reacted neither positively or negatively," said Sebastien Galy, senior currency strategist at BNP Paribas in New York.
The contrasting emphasis in the two reports highlights the need to look beyond headlines and news summaries. When it comes to the durable goods data, the latest report really reflects what is more often than not par for the course toward the end of a recession. In such cases, a rise in durable goods orders usually starts in sectors, it is not pervasive throughout manufacturing. In addition, during shallow recoveries, as could unfold in the months ahead, different manufacturing sectors can experience different outcomes for an extended period. In short, a growing economy, especially if the growth is weak and secular changes may be underway, may not necessarily lift all boats immediately so to speak.