WS News
27 Jul 2026, 16:55
US Durable Goods Orders Miss Expectations as Business Investment Momentum Softens
U.S. markets received a mixed set of economic data on Monday, with June durable goods orders and core durable goods orders both coming in below economists’ expectations, while the Atlanta Fed’s GDPNow estimate was revised slightly lower.
Headline durable goods orders increased 0.3% month over month in June, missing the consensus forecast of 1.6%. Although the reading returned to positive territory following May’s 4.0% decline, the rebound was weaker than investors had anticipated, suggesting demand for long-lasting manufactured goods remains uneven.
Core durable goods orders, which exclude the volatile transportation sector and are viewed as a key indicator of business investment, rose 0.6% in June. The figure also fell short of the 0.9% consensus estimate and slowed significantly from the previous month’s 1.8% increase, pointing to more moderate capital spending by businesses.
Adding to the cautious tone, the Atlanta Fed’s GDPNow model lowered its estimate for second-quarter U.S. economic growth to 1.6% from 1.7%, indicating a modest slowdown in the pace of economic expansion.
The softer-than-expected data reinforced expectations that U.S. economic growth is gradually moderating rather than contracting sharply. While weaker business investment could support the case for future Federal Reserve rate cuts, the reports were not weak enough to significantly alter market expectations ahead of this week’s Federal Open Market Committee meeting.
For investors, the data paints a picture of an economy that continues to expand but at a more measured pace. Markets are now likely to shift their focus to the Federal Reserve’s policy decision, upcoming inflation data, and a busy slate of corporate earnings for further clues on the direction of interest rates and economic growth.
U.S. markets received a mixed set of economic data on Monday, with June durable goods orders and core durable goods orders both coming in below economists’ expectations, while the Atlanta Fed’s GDPNow estimate was revised slightly lower.
Headline durable goods orders increased 0.3% month over month in June, missing the consensus forecast of 1.6%. Although the reading returned to positive territory following May’s 4.0% decline, the rebound was weaker than investors had anticipated, suggesting demand for long-lasting manufactured goods remains uneven.
Core durable goods orders, which exclude the volatile transportation sector and are viewed as a key indicator of business investment, rose 0.6% in June. The figure also fell short of the 0.9% consensus estimate and slowed significantly from the previous month’s 1.8% increase, pointing to more moderate capital spending by businesses.
Adding to the cautious tone, the Atlanta Fed’s GDPNow model lowered its estimate for second-quarter U.S. economic growth to 1.6% from 1.7%, indicating a modest slowdown in the pace of economic expansion.
The softer-than-expected data reinforced expectations that U.S. economic growth is gradually moderating rather than contracting sharply. While weaker business investment could support the case for future Federal Reserve rate cuts, the reports were not weak enough to significantly alter market expectations ahead of this week’s Federal Open Market Committee meeting.
For investors, the data paints a picture of an economy that continues to expand but at a more measured pace. Markets are now likely to shift their focus to the Federal Reserve’s policy decision, upcoming inflation data, and a busy slate of corporate earnings for further clues on the direction of interest rates and economic growth.
