Orders for US durable goods rebounded in July

Orders to USA factories for big-ticket manufactured goods surged in July, lifted in part by the biggest increase in orders in a key investment category since January. The short decrease was expected because the rate has found resistance above the minor median line (ml), has retested the minor median line and was expected to retest the lower median line (lml) of the ascending pitchfork before will resume the bullish movement. However, US durable goods orders might improve in July since Markit’s US manufacturing PMI rose markedly in July.

USA manufacturing showed strength in July as durable goods orders rebounded from two straight falls, the Commerce Department reported Thursday.

That in turn put pressure on manufacturing, which has also been undercut by a strong dollar, weak global demand and a United States inventory correction.

The back-to-back increases in capital goods bookings, the first since January 2015, signal sales of such equipment will pick up after shipments weakened for a third straight month in July.

He said that the rebound in financial markets following the turbulence caused by the June 23 vote in Britain to leave the European Union should reduce business uncertainty, “giving managers more confidence to expand their business”. Heavy machinery maker Caterpillar last month lowered its 2016 forecast, citing sluggish demand in mining and other industries.

But labor market strength should support consumer spending and cushion the blow on the economy from weak business investment.

Durable goods orders were previously reported to have declined 3.9 percent in June.

In a separate report on Thursday, initial claims for state unemployment benefits slipped 1,000 to a seasonally adjusted 261,000 for the week ended August 20.

Economists had forecast that orders for goods built to last for long rose 3.4%, according to Bloomberg.

Companies buying transportation equipment stoked the overall growth as their orders increased 10.5%, including a 90% surge in commercial aircraft orders.