US durable goods new orders fell -2.8% MoM in July, better than the -4.0% MoM expected drop and an improvement over the -9.4% MoM drop in June.

• New orders (ex-transport) were up 1.1% MoM (vs 0.2% MoM expected), growing alongside a simialr 1.0% MoM increase in shipments (ex-transport).
• New order growth was strongest in primary metals (+0.9% MoM), electrical equipment & components (+2.0% MoM), and computers & electronics products (+0.6% MoM).
• Transport equipment orders saw another sharp decline, dropping -9.7% MoM as aircraft orders continue to come down from the May surge.
• Nondefense capital goods (ex-aircraft) orders jumped 1.1% MoM (vs 0.2% MoM expected), and orders for the core capital goods category were up 0.7% MoM.
• Overall, durable goods unfilled orders are up 7.1% YoY, driven by a large backlog in the aircraft segment.
• Core capital goods unfilled orders are only up 0.4% YoY, while inventories are up 2.2% YoY.