Durable Goods Orders Rebound Sharply

- Durable Goods Orders for August rose 3.3% versus estimates of a .7% gain and a 5.3% decline in July.
- Durables Ex Transportation for August rose 4.2% versus estimates of a 1.0% gain and a 3.7% decline in July.

BOTTOM LINE: US orders for durable goods rose a greater-than-expected 3.3% in August, rebounding as businesses sought to rebuild stocks depleted by surging sales, Bloomberg reported. Total shipments, a gauge of future sales, rose 1.7%, the most since December. As well, bookings for non-defense capital goods excluding aircraft, an indication of future business spending, rose 3.6% last month. Moreover, unfilled orders, a measure of future production, rose 1.7%. Durables will likely take a tumble for September on Katrina, however another push higher is likely thereafter through year-end.