US: Factory orders likely increased modestly during June - Nomura

According to analysts at Nomura, US factory orders likely increased modestly during June given the 1.0% m-o-m increase in the advance durable goods report for the month.

Key Quotes

“New orders and shipments of nondefense capital goods excluding aircraft, together with positive backward revisions, appear consistent with healthy growth in business equipment investment in Q2.”

“We expect the final estimates of these indicators to reaffirm healthy momentum in business equipment investment in coming quarters. However, final inventory data will likely be consistent with softer inventory buildup at the end of Q2.”