Durable goods orders dropped 6.8% in July after surging in June. Much of the weakness may be attributed to a 70% drop in aircraft orders which soared nearly 129% in the wake of the Paris air show.
Orders for new vehicles fell 1.2%, marking the second consecutive monthly decline. Vehicle producers are scaling back since aggressive incentives and financing deals liquidated what was left in pent-up demand in recent years. The industry now relies on replacement demand.