Although orders of core capital goods (nondefense capital goods excluding aircraft) continued to rise on a year-over-year basis, the more forward-looking three-month annualized rate fell sharply. Shipments of core capital goods declined for the second consecutive month and were barely up from the year-ago level. The softness of the July durable goods data is generally in line with the subdued industrial production report but contrasts with the strength of the Institute of Supply Management's manufacturing survey and most of the regional Federal Reserve Bank surveys.
