"Things are heading higher for manufacturing and for the economy. Orders are picking up. More businesses are starting to replace equipment."
- BMO Capital Markets
Core durable goods' orders in the United States rose in line with expectations in August, as they added 0.7% on a monthly basis. The strong data is most likely explained by rebound after a considerable decline in July, when orders dropped a revised 0.7%. At the same time, the broader indicator for durable goods' orders, which includes transportation items, lost 18.2% in August, slightly more than it was expected by the majority of analysts. It followed a surge of 22.6% a month before on a 318% jump in Boeing orders for new airplanes, while this month the correction took place. Meanwhile, analysts usually follow the core indicator, as it excludes volatile items, such as planes and cars and is able to show more realistic situation to estimate general economic activity in the country.
Besides that, jobless claims in the world's largest economy rose last week; however, they still remain below the monthly average around 300,000 claims. The indicator for week ended September 19, in turn, added 12,000 to 293,000 claims for unemployment benefits. Analysts' expectations ranged from 275,000 and up to 320,000, meaning that results are pointing on improving situation in the economy. Despite stagnation in wages' increase, consumer spending in the U.S. is growing, which forces companies to create more new jobs.
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