September's durable goods data reveals a nuanced picture of American manufacturing resilience. While headline orders declined 0.8% month-over-month, core orders - excluding volatile transportation - increased by 0.4%, significantly outperforming consensus expectations of a 0.1% decline.
This divergence highlights the importance of looking beyond surface-level indicators. Business investment in capital equipment remains robust, suggesting continued confidence in future growth despite broader economic uncertainties.
The outperformance relative to expectations (-0.8% vs -1.1% forecast for headline numbers) indicates that manufacturing may be more resilient than many analysts anticipated, with potential positive implications for Q4 economic growth.
Its good that the data shows the usa is strong, but all it takes is one disruption like covid.
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