Economists on average had been expecting a 3% increase in durable goods orders for July, but that didn't happen. Bookings rose only 0.3% from June, and when transportation is excluded, orders actually decreased 3.8%. The "capital spending implications still look atrocious," Michael Feroli, chief U.S. economist at JPMorgan Chase, wrote in a note to clients. "The downshift in the pace of capital spending is particularly worrying as this was the strongest, most reliable sector of the economy over the past year."
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