US Durable goods orders to rebound sharply - Deutsche Bank

Analysts at Deutsche Bank are out with their brief preview on the upcoming US durable goods data due for release at 12.30GMT.

Key Quotes:

“Headline durable goods orders (+3.5% vs. -0.8%) will be boosted by Boeing aircraft while ex-transportation orders (+0.5% vs. +0.3%) should rise more modestly.

As always, we will pay close attention to nondefense capital goods orders excluding aircraft (+0.5% vs. +0.2%) which is the core of the report and a key indicator of the underlying trend in equipment spending in the GDP accounts.

While we project a slight narrowing in the advance goods trade balance (-$65.0 billion vs. -$65.9 billion) last month, the external sector was likely a mild drag on inflation-adjusted output last quarter.”