The numbers: Orders for long-lasting goods rose in July for the third month in row if recent ups and downs at Boeing are set aside, suggesting the struggling industrial side of the U.S. economy may have stabilized.
Durable-goods orders increased 0.5% in July if transportation — autos and planes — are excluded. Boeing
BA,
orders often seesaw in the summer months and distort the true condition of American manufacturing.
Headline orders, which include transportation, sank by 5.2% last month, the government said Thursday.
Economists polled by The Wall Street Journal had forecast a 4.1% drop in July following a 4.4% spike in June. The topsy-turvy results in the past two months are almost entirely due to Boeing.
A better measure of the health of U.S. manufacturing, known as core orders, edged up 0.1% in July. This is a proxy for broader business investment.
Business investment is running slightly ahead of last year’s pace, but it’s weakened considerably and many manufacturers are just treading water.
Big picture: Maybe the industrial side of the economy has hit bottom, maybe it hasn’t. Getting a clear picture might have to wait until interest rates stop rising.
Higher borrowing costs typically stunt the economy and discourage businesses from hiring, spending and investing.
Market reaction: The Dow Jones Industrial Average
DJIA,
and S&P 500
SPX,
were set to open mixed in Thursday trades.
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