U.S. durable goods bookings expected to increase

U.S. durable goods orders likely climbed by 1.2% in July, building on the above-consensus 3.4% jump recorded in June - the first consecutive gains in "hard" goods requisitions since the corresponding period of 2014. A demand-induced surge in motor vehicle bookings, combined with a third straight increase in defense-related orders, probably propelled transportation-equipment requisitions 2.0% higher during the reference period, after an aircraft-led 9.3% leap in June. 

Net of the anticipated strength in transport orders, durable goods bookings are expected to accelerate slightly, rising by 0.7% and eclipsing the 0.6%prior-month advance, says Societe Generale in a research note. Soundings on nondefense capital equipment sans commercial aircraft are expected to support the upbeat underlying tone of the Census Bureau's advance report. 

"U.S. core nondefense capital goods orders likely rose by 1.0%, placing July's tally 5.0% annualized above the April-June average. Nondefense capital goods shipments less jetliner deliveries, meanwhile, probably expanded by 1.2% - 5.2% annualized above the springquarter mean", estimates SocGen.