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US Durable Goods Orders Reported Strong

James Boston
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US Durable Goods Orders Reported Strong

As the US markets wind down for the Thanksgiving holiday there is an abundance of data being published today in order to keep the release calendar on schedule. The headline figure is clearly the monthly Durable Goods Orders, in line with a strong third quarter as evidenced by yesterday’s GDP growth report, the data continues to show strength for the beginning of Q4. October’s Durable Goods have come in at plus 0.4%, and at the same time the September number has been revised up from -1.1% to -0.9%, improvement was anticipated but only to a reading in the region of -0.6%. The Durable Goods Orders Ex Transportation however did not fare so well, this reading is down -0.9% compared to a positive 0.2% recorded in September, the expectation was for a further run up to 0.5% today. Similar to the Canadian data seen yesterday, the North American Auto industries are evidently going through a strong growth phase as consumer confidence returns and pent up demand is released, this naturally has the effect of temporarily diverting spending from other areas of the durable goods sector.

Although overall the US employment market is believed to be recovering strongly, despite some slack and regional disparities, there has been a marginal deterioration in the weekly jobs numbers. This may partly be explained by the reduction in casual labour heading into a holiday period and it is anticipated that a recovery is most likely after the break. The Initial Jobless Claims numbers for the week ended 22nd November have been announced as having risen to 313k from a prior week’s report of 291k, most expectations were for this figure to remain around 290k to 295k level. The previous week’s Continuing Jobless Claims report however did manage to show a little improvement at 2.316M compared to the preceding level of 2.330M.

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