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Boeing boosts durable consumer goods orders, but shortages are still hampering the U.S. economy

Numbers: Increased flights and rebounds in the aviation industry boosted U.S. consumer durables orders in August, but continued supply shortages restrained automakers and remained a drag on the country’s economic recovery. ..

Orders for durable consumer goods surged 1.8% last month, and business investment also increased. The government said on monday.. Economists polled by The Wall Street Journal predicted an increase of 0.6%.

The government also revised its July report to show that bookings will increase significantly, not decrease.

However, the increase in orders last month was somewhat exaggerated.Boeing
BA,
+ 0.13%

Orders for 737 Max jets and other planes surged even further.

Excluding transportation, bookings increased by only 0.2%. The numbers are seasonally adjusted.

read: Delta’s trading hits the economy in August, but businesses remain bright

Big picture: The manufacturing side of the economy is not as big as it used to be, but it still plays a major role in the speed of expansion of the United States and is an important indicator. The good news is that manufacturers still have enough demand. This is a sign of a healthy economy.

The biggest problem for manufacturers is finding important supplies and finding enough skilled workers to staff the factory. Material and labor shortages will continue at least until the end of the year, otherwise they could curb the rapid recovery of the United States.

Main details: Orders for new commercial aircraft surged 78% in August, driving most of the increase in reservations for US-made durable consumer goods (products designed to last at least three years).

However, orders for expensive planes tend to be rugged on a monthly basis and are not the best indicator of how American manufacturers are doing.

Automakers will be able to sell more cars if they can build enough cars. However, the global shortage of computer chips has delayed production and scared some buyers. New orders in August fell 3.1%.

New orders were weak except for transportation.

Reservations for electrical equipment and metalworked parts used in a range of consumer goods and business supplies have increased.

Nevertheless, orders for computers, machinery and primary metals, which are essential for the production of industrial products, have declined.

On the other hand, business investment was firm. It increased by 0.5% in August and increased for 6 consecutive months.

These so-called core orders are seen by investors as signals of future business outlook, and the outlook looks good. Business investment has increased by almost 14% over the past year.

Market reaction: Dow Jones Industrial Average
DJIA,
+ 0.10%

Set to open higher, but S & P 500
SPX,
+ 0.15%

The trading at the beginning of Monday seemed to be on a declining trajectory.

Boeing boosts durable consumer goods orders, but shortages are still hampering the U.S. economy

Source link Boeing boosts durable consumer goods orders, but shortages are still hampering the U.S. economy

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