Durable goods capital goods continue to expand, but...

The U.S. Department of Commerce released durable goods data on the 24th.

Durable goods orders, and core capital goods orders (nondefense capital goods excluding aircraft) continued to expand smoothly. (Durable goods orders slightly declined, but this was a normal correction after a strong prior month.)

Despite tightening financial conditions and recession concerns, companies are continuing to expand investment.

As I have said repeatedly, the U.S. economy is still expanding at the moment.

Following the durable goods report, interest rates rose and the dollar strengthened. Stock prices edged higher.

Note: Capital goods are goods used to produce other goods, excluding land. Examples include machinery, buildings, tools, etc. They are intended for long-term use.

However, what deserves attention are shipments and inventories. In particular, the increase in inventories.

Note: The durable goods report releases orders, shipments, and inventories.

(Non-durable goods will be released at a later date.)

Inventories are increasing with a lag behind shipments,