FXStreet (Delhi) – Stefan Koopman, Research Assistant at Rabobank, notes that owing to the multitude of data series and at times large revisions, US durable goods data typically have something to please both bulls and bears but this time, however, it was difficult, if not impossible, to find something positive.
Key Quotes
“Demand for durable goods plummeted by 1.2% in September, whereas core orders dropped 0.4%. This follows up on a downwardly revised -0.9% reading in August. Orders for capital goods fell significantly as well, signalling that the strong dollar, weak commodity prices and weak global dynamics are weighing on corporate investment.”
“Softer indicators also disappointed somewhat, although it would be premature to ring any alarm bells. Even though both Markit’s services PMI and Conference Board’s consumer confidence failed to live up to the market’s expectations, the readings of 54.4 and 97.6 respectively still point to decent growth and are above the series’ long-term average. There is still sufficient momentum in the domestic economy, despite the struggles in manufacturing.”
(Market News Provided by FXstreet)