US Durable Good offers further hints that manufacturing activity is beginning to stabilize – Wells Fargo

The US Durable goods orders report came in above expectations in October, showing an increase of 0.6% Core capital goods orders jumped and suggest equipment spending could rebound in the fourth quarter, according to analysts at Wells Fargo. 

Key Quotes: 

“The October durable goods report offers further hints that manufacturing activity is beginning to stabilize. Orders were up 0.6% last month. Some of the gain was driven by a 10.7% jump in aircraft. More telling, however, was the 1.2% increase in core capital goods orders.”

“The trend in orders growth remains generally uninspiring. Core orders remain down over the past three months, while the regional PMIs for November show orders remaining weak. With global growth still struggling and uncertainty about trade policy still lingering, we expect capex to remain lackluster.”