Weak commercial aircraft bookings weigh on US factory orders in July
1. U.S. manufactured goods orders fell in July due to weak aircraft bookings. 2. Businesses maintained strong equipment spending early in Q3, potentially supporting growth.
FAQ
Why Neutral?
While a drop in new orders may hint at economic slowing, sustained equipment spending reflects underlying strength. Historically, similar trends show mixed impacts; for example, June's construction spending drop preceded further S&P 500 gains.
How important is it?
The balance of declining orders and strong spending indicates mixed signals for the market, implying moderate relevance. Economists often interpret these figures cautiously, which can lead to volatility in the S&P 500’s immediate response.
Why Short Term?
Immediate reactions to order drops can influence market sentiment; however, strong equipment spending may counteract. Previous economic indicators have shown that initial drops can lead to quick recoveries, thus affecting the S&P 500 short-term.