President Donald Trump’s Council of Economic Advisers has reported signs of economic rebound in October for durable goods orders and core capital goods shipments.
Manufacturers’ new orders for durable goods rose 1.3% in October, above market expectations.
However, this October level still remains 2.2% below its February level. Shipments of durable goods rose 1.3% and is now 0.6% above its February level.
In addition, nominal shipments of core capital goods (nondefense capital goods excluding aircraft) rose 2.3% in October, exceeding expectations.
While nondefense aircraft shipments increased 36%, they remain depressed because of issues with Boeing’s 737 MAX and the global drop in air travel due to COVID-19.
Total nominal shipments of all nondefense capital goods (core plus aircraft) rose 3.7% in October.
These percentages extend the interval of strong growth in core capital goods shipments into October, and motor vehicle sales also continue to trend upward.