The Commerce Department reports orders for durable goods fell 6.8% in July, led by a drop in aircraft orders. It was the biggest decline since August 2014 but followed a 6.4% gain in June. Economists expected a 6.9% drop. The see-saw pattern in orders was due to the volatile civilian aircraft sector. Boeing reported orders for 22 new planes in July versus 184 in the June. Excluding transportation, orders for durable goods rose 0.5%, the third straight monthly gain. Orders for core capital goods, which are proxy for business investment, rose 0.4%. They have not declined since December. But orders excluding defense fell 7.8%, the biggest drop in three years.
Black Knight Financial Services reports the number of homes in foreclosure fell below 400,000 for the first time since February 2007. Inventory has dropped by 28% in the last year. The market in home flipping where investors buy cheap properties, remodel quickly, and resell that sprang up after the crisis may be drying up. At the end of last year, Attom Data released a report showing that the number of house flips was on the decline as steeper home prices compressed profit margins.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
