Washington, (UrduPoint / Pakistan Point News – August 25, 2021): Spending on high-value U.S. manufactures edged down in July, but was held back by increased demand from the defense sector, government data shows released Wednesday.
After two months of increases, durable goods orders fell 0.1% from June to $ 257.2 billion, the Commerce Department reported, a smaller decline than analysts expected.
Orders from the military prevented a much larger drop in the total, with orders for defense equipment rising 20.5% and planes slowing down.
Excluding the defense sector, total new orders fell 1.2%, according to the report.
Meanwhile, the transportation sector fell as orders for non-military aircraft plunged, although spending on motor vehicles and parts increased.
Ian Shepherdson of Pantheon Macroeconomics noted that the data “was affected by a sharp drop in net orders for Boeing aircraft – which are trending up but are extremely volatile.” But, he said, “companies are sitting on record piles of cash, so we expect orders for capital goods to be still warm for a while.” than consensus forecast.
“Headwinds on the supply side are showing some tentative signs of easing, but it will take a long time to return to pre-Covid conditions,” said Oren Klachkin of Oxford Economics.