Economic Reports 06/27/07

Summary: Seems that the printing presses in Japan are working for a good cause...

Yesterday, $17B 2 year note auction with 29% indirect bidders. Today, $13B 5 year note auction with 32% indirect bidders.

Durable orders falling, thus raising concerns over a lack of capex spending while non defense capital goods orders got hammered.

Durable Orders May -2.8% vs prior +1.1%
Full Report

Inside the number: prior revised up from +0.8%. Inventories +0.2%, up 15 straight months; Unfilled orders +0.8% up 24 of 25 months; both at their highest levels ever.

Shipments +0.4%, up 3 straight months; Transportation orders -6.8%; Commercial aircraft -22.7% vs prior -11%, machinery -1.6%.

Sending capital goods orders -7%; non defense capital goods orders -8.3%; shipments -0.3% vs prior +1.2% vs prior +1.7%.

YOY: computer orders -7%, shipments -6.2%; communications orders -5%, shipments -5.1%; motor vehicle & parts orders -5.5%, shipments -6.4%.

Defense aircraft orders -21%; all other durable goods orders -4.9%, shipments -5.4%.

YOY: Capital Goods unfilled orders +24.7%, inventories +7.6%; Non Defense Capital Goods unfilled orders +31%, inventories +9.1%.

Ex aircraft unfilled orders +16.8%, inventories +6.7%; all other durable goods unfilled orders +8.9%, inventories +1.9%

#2 US Steel Company Nucor: Q2 profit will fall because of slumping metal demand by automakers and homebuilders.

U.S. shipments fell after customers stocked up on steel during Q1.

Industrial production stalled last month, in part because manufacturers of cars and machinery scaled back.

Comments