Another Crack in the Kamala Economy: Core Durable Goods Orders Unexpectedly Tumble

Orders at U.S. factories for core capital goods fell by 0.1 percent in July, the latest sign of weakness in the U.S. manufacturing sector.

Core capital goods are durable goods excluding military products and aircraft. Orders declined on a month-to-month basis in four of the first seven months of the year. Compared with the first seven months of 2023, orders of nondefense capital goods excluding aircraft are up 0.5 percent.

Core capital goods are seen as a proxy for business investment and are regarded as a key bellwether for the U.S. economy.

Shipments of core capital goods fell by 0.4 percent after being flat in June and declining in May.

Orders for new cars and trucks rose 34.8 percent in July after plunging 20.6 percent in June as auto dealers were hit by a cyberattack that shut down their systems in the month.
Machinery orders were flat. Orders for computers and electronics declined.

Defense orders rose 1.2 percent but are 4.4 percent lower than they were a year ago. Defense orders have been boosted by the war in Ukraine.

Overall orders rose by 9.9 percent, driven by a jump in aircraft orders.

Kamala Harris has falsely claimed on the campaign trail that the U.S. manufacturing sector has been booming. Economic data indicate that the sector has been in contracting for almost two years.