Today we have the results from Core Durable Goods Orders, representing the purchase of long-lasting U.S manufactured goods. According to the Bureau of Economic Analysis, the average age of equipment is 7.4 years, indicating that business and consumers have not been investing in larger, more expensive goods. Yet, recent economic data has been encouraging suggesting that the worst of the winter declines may be behind us.
Trade of the Day: Core Durable Goods 12:30 GMT
- March results for Core Durable Goods Orders were impressive, jumping 2.4% over the previous month.
- New Goods Orders slipped by 0.8% for April.
- U.S Manufacturing PMI picked up to a 3 month high in May, rising to 56.2 compared to 55.4 in April, indicating expansion in the manufacturing sector.
- Retail sales were soft in April only rising by 0.1%, suggesting consumers still lack the appetite to spend, as consumer sentiment in May has dropped to 81.8 from 84.1.
- The forecast for today’s Core Durable Goods is 0.2% compared to a previous 2.4%.
- Banc De Binary analysts predict the result today will be soft, reflecting the need for further growth in the U.S economy, hence a downward movement in the USD/JPY is expected.