Manufactured durable goods orders advanced in August, and increased in five of the last six months and shipments increased in three of the last four months. Non-defense capital goods orders excluding aircrafts rebounded after declining in the previous month.
The Federal Reserve left the fund funds rate range unchanged for the second time in a row but left a door open for another rate hike before the year's end.
Overall inflation in August accelerated for the second month in a row after gasoline prices soared from the previous month but core inflation slowed to the lowest pace in nearly two years.
Seasonally adjusted sales, but not for prices, rose in July from the previous month and from the year earlier after consumer spending held up despite rising prices and multiple rate hikes.
Consumer price inflation accelerated in July but core inflation edged slightly lower after wages and food prices rose at a slower pace but shelter costs rose at elevated levels.
GDP expanded at a faster pace in the second quarter, driven by business investment and resilient consumer spending despite elevated prices. Much of the economy is escaping the sharp increase in interest rates over the last sixteen months.
New orders for durable goods rose at the fastest pace in June from the previous month in nearly three years after demand for transportation equipment and aircraft soared.
Retail sales, unadjusted for inflation, advanced 0.2% in June, indicating resilient consumer spending. Core retail sales, which excludes larger and one time items, rose at a faster pace of 0.6%.
Leisure and hospitality sector led job gains in June followed by notable increases in construction, education and trade and transportation. Still, manufacturing, information and finance sectors reported declines.
