Durable Goods Orders Decline in May Because of Lower Aircraft Sales
After a 1.5 percent decrease in new durable goods orders in April, the Census Bureau reported another decline of 1.8 percent in May. But unlike April’s decline, which reflected a broader softness in the market, May’s decline is directly tied to reduced aircraft sales for the month. Aircraft orders are often bulked together in batches, making them more volatile, as May demonstrated with its 5.4 percent drop in transportation equipment orders. On a positive note, we should experience an uptick in this category in June, with aircraft sales lifted by the recent Paris Air Show. To learn more, visit here.
Eurozone Manufacturers Report Fastest Growth in More Than a Year
In its fastest pace of growth since April 2014, the Markit Flash Eurozone Manufacturing PMI increased from 52.2 in May to 52.5 in June. Manufacturing output and employment both expanded modestly last month, while new orders and exports were down slightly in June. Overall, the underlying story in Europe is a positive one, with the Eurozone making significant progress in recent months and brushing off possible risks from Greece. On a year-over-year basis, the Eurozone grew 0.1 percent, with industrial output up 0.8 percent. To learn more, visit here.
TSCA Modernization Act Approved in the House
The Toxic Substances Control Act (TSCA) was written nearly four decades ago and has not been updated since to reflect modern realities. But last week, the House of Representatives nearly unanimously approved the TSCA Modernization Act of 2015 (H.R. 2576) by a vote of 398-1. The proposed reform will streamline the assessment process, promote more uniform regulations and provide clarity to the consumer that products are safe to use. The Senate is also gaining momentum on similar reform legislation with S. 697, the Frank L. Lautenberg Chemical Safety for the 21st Century Act. To learn more, visit here.
Personal Spending Rebounds Strongly in May
Personal spending rose 0.9 percent in May, picking up strongly from a 0.1 percent growth rate in April, according to the Bureau of Economic Analysis. May’s numbers reflect the fastest monthly growth rate since August 2009, lending encouragement that Americans may be less hesitant to open their wallets moving forward. From the manufacturing perspective, spending on durable goods increased 2.2 percent and nondurable goods went up 1.9 percent. To learn more, visit here.