Durable goods orders fell but capital goods orders rose in June, a pair of mixed signals that had markets basically uncertain with a negative trend. Futures on the Dow Jones Industrial Average index slipped 26 points to 10,468, while S&P 500 futures contracts lost 3.7 points to 1,105.2 and those on the Nasdaq 100 lost 3.5 points 1,883 just after 10:15 a.m. EST.
Analysts had projected that orders for durable goods – those meant to last three or more years, like dishwashers and televisions – would increase 1 percent in June. Instead, they fell 1 percent. That decline shows a widespread nervousness among consumers, who aren’t yet confident enough to commit their capital to expensive purchases.
Some may be turning their cash towards paying down debt, while others may be trying to remain mobile as they look for work.
On the bright side, orders for non-military capital goods – excluding aircraft – rose in June, an indication of more investment by businesses small and large.
“Businesses are, in general, still investing,” Russell Price of Ameriprise Financial in Detroit told Bloomberg News. “If they want to compete, they have to invest. The recovery is continuing.”
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