Durable Goods Orders in the US rose less than expected in June, pointing to a modest recovery following a sharp contraction in the previous month. The US Census Bureau announced on Monday that new orders for manufactured durable goods in the United States increased by $1.1 billion, or 0.3%, bringing the total to $334.8 billion during the month of June.
Contrast With May Decline and Market Forecasts
This latest reading followed a notable 4% decline recorded in May, prompting expectations of a rebound across the manufacturing sector. However, the actual growth rate fell considerably short of the median market expectations, which had projected an increase of 1.6% for June.
Sector Breakdown and Leading Categories
According to the official press release, excluding the volatile transportation sector, new orders actually increased by 0.6 percent. When excluding defense-related orders, the increase stood at 0.3 percent. Computers and electronic products emerged as the primary growth drivers, logging increases in nine of the last ten months, jumping by $0.9 billion or 3.1 percent to reach $31.1 billion.
Market Reaction and US Dollar Index Performance
This batch of economic data failed to trigger a noticeable or aggressive market reaction across major asset classes. At the time of press, the US Dollar Index was down 0.05% on the day, holding steady within its daily range just below the 101.50 level at 101.40.
Movements in GBP/USD and EUR/USD Pairs
Meanwhile, the GBP/USD pair reversed its earlier direction and traded in the red near the 1.3300 handle during the second half of the day on Monday, after starting the trading week on a relatively bullish note. Falling crude oil prices, following a temporary pause in the Middle East conflict, helped limit the broader gains of the US Dollar and allowed the pair to hold its ground temporarily. At the same time, the EUR/USD pair lost its earlier bullish momentum, trading with small gains below the 1.400 mark in the second half of Monday. Market participants remain hopeful for a potential de-escalation of tensions in the Middle East following a pause in strikes, although considerable uncertainty persists regarding whether the US and Iran will successfully find a diplomatic solution.
