Today, the U.S. Census Bureau published its monthly report on U.S. durable goods manufactures’ shipments, inventories and orders for August 2011 – the report showed a slight decrease in orders of durable goods but an increase in capital goods compared to July.
According to the recent report, during August 2011, new orders of manufactured durable goods slipped by $0.2 billion or 0.1% to $201.8 billion; Shipments of manufactured durable goods also fell by $0.4 billion or 0.2% to $201.0 billion. This decrease came after the shipments inclined for three consecutive months.
The decrease in durable goods is attributed to the weak demand of the Auto industries.
On the other hand the Non-defense new orders for capital goods increased by $3.9 billion or 5.2% to $78.1 billion; Inventories of manufactured durable goods increased for twentieth consecutive months – last month they have increased $3.2 billion or 0.9% to $365.3 billion.
This report provides a good indicator of the progress of the US economy in August. Since the new orders fell, while the demand for capital goods inclined, this report sends a mixed signal, but is likely to lean towards to negative signal.
Some speculate that this report may drive the U.S. stock markets slightly down during the day and will drag along with it major commodities prices including crude oil prices.
Currently major commodities are traded down, while the Euro and other major currencies are traded slightly up against the USD:
Current Nymex crude oil price, short term futures (October 2011 delivery) is traded sharply down by 1.47%, at $83.21 per barrel as of 15:25*.
Current gold price, short term futures (October 2011 delivery) is traded at $ 1,641.20 per t oz. a $11.3 decrease or 0.68%, as of 16:21*.
Euros to USD is currently traded up at 1.3616 a 0.2245% increase as of 16:35*.
For more on this subject:
- U.S. Consumer Confidence Remained Low in September
- U.S. New Home Sales Dropped Again in August 2011
- Weekly Outlook for September 26-30