Durable goods orders preview: looking for a pick-up - Nomura

Analysts at nomura offered a preview for the durable goods orders thathave stalled in recent months, declining 0.3% in September following a small 0.2% increase in August.

Key Quotes:

"However, incoming data suggest we are likely to see a sizeable pick-up in October. We are looking for a rebound in transportation orders, as vehicle assemblies and defense aircraft and parts orders appeared to have picked up in October.

Also, the performance of the ISM manufacturing new orders index over the October and September period suggest better demand for manufactured goods in recent months. Plus, industrial production of durable goods excluding transportation for October grew by 0.4%.

Taking all of these factors into account, we forecast a 0.8% m-o-m rise in goods orders excluding transportation in October (Consensus: +0.2%) and total durable goods orders growth of 1.5% (Consensus: +1.7%)."

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