Blog – Durable Goods and Capital Spending Analysis – June 2023 Summary: New orders for durable goods rose a strong 4.7% (8.9% y/y) in June, following a 2.0% (5.7% y/y) monthly gain in May, (initially up 1.7% m/m). June represents a fourth consecutive monthly gain. The Action Economics Forecast Survey had looked for a smaller monthly advance of 1.8%. Shipments of durable goods rose 0.3% (3.8% y/y) in June, up three of the last four months and following a 2.0% (3.6% y/y) rise in May (initially up 1.7% m/m). Transportation orders made another significant contribution to the rise in overall orders in June. They were up 12.1% m/m (26.0% y/y) after a 4.3% rise (18.1% y/y) in May (initially up 3.9% m/m). A whopping 57.1% m/m gain in orders for aircraft and parts provided a major boost to overall transportation orders, following a 12.5% rise in May. The June increase reflected a 69.4% m/m jump in nondefense aircraft orders and a 5.5% m/m gain in defense aircraft orders. Orders excluding transportation increased 0.6% m/m in May, after a 0.7% rise in May (revised up from a 0.6% m/m gain). Across other sectors, the June rise in orders reflected increases in major categories except for defense orders. Both orders for computers and electronic products and for electrical equipment posted monthly gains of 1.5%. Total defense orders contracted 17.1% in June, following a decline of 12.7% m/m in May. Excluding those, the remaining orders rose a robust 6.2% m/m in June, after a 3.2% rise in May. Shipments of all manufactured goods edged up 0.2% m/m (-2.6% y/y) in June, following a 0.4% m/m (-1.8% y/y) in May (initially reported as up 0.2% m/m). Shipments of durable goods rose 0.3% m/m in June, while shipments of nondurable goods edged up 0.1% m/m. Transportation shipments rose a mere 0.2% m/m in June and excluding transportation, other shipments of durable goods increased 0.3% m/m. Capital goods orders contained in this report provide important information concerning business spending on equipment. Orders for nondefense capital goods excluding aircraft (core capital goods) increased 0.2% m/m (1.9% y/y) in June, following a downwardly revised 0.5% m/m rise in May (initially up 0.7% m/m). Core capital goods shipments were barely changed in June (+3.3% y/y) following a 0.3% rise in May (revised from up rose 0.2% m/m). These data leave Q2 core capital shipments up an annualized 1.9%, down from 2.3% in Q1. Source – https://www.haver.com/articles/u-s-durable-goods-orders-surprised-again-on-the-upside-in-june Additional links and sources: Capital spending outlook - https://www.beckershospitalreview.com/finance/capital-spending-shows-surprising-rise-during-period-of-all-time-operating-lows-fitch-says.html GDP - https://www.moodysanalytics.com/-/media/article/2023/weekly-market-outlook-second-quarter-gdp-impresses.pdf Capital Spending - https://www.alliancebernstein.com/americas/en/financial-professional/insights/investment-insights/2023-multi-asset-midyear-outlo

1. Durable Goods and
Capital Spending –
United States and the
World
Paul Young CPA CGA
Senior CSM – Data and AI
July 29, 2023

2. Paul Young CGA
CPA
Senior CSM – Data
and AI
• CPA, CGA (1996)
• Academia (PF1, FA4, FN2, MU1. and MS2)
• SME – Customer Success Management
• SME – Risk Management
• SME – ESG and Sustainability Reporting and
Policy Development
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Macro/Micro Indicators
• SME – Supply Chain Management
• SME – Data, AI, Security, and Platform
• SME – Internal Controls and Auditing
Contact information email:
paul_young_cga@outlook.com
LinkedIn: https://www.linkedin.com/in/paul-
young-055632b/

3. 3
Agenda
• Durable Goods
• Business Investment Outlook – 2021
• Supply Chain and Analytics
• Capital Ex Planning
• Blog – Supply Chain
• Blog – ESG Reporting
• Blog – Asset Monitoring
• Blog – Vegetation and Geospatial

4. 4
Durable Goods / Key Areas – USA
Source - https://www.census.gov/economic-indicators/index.php

5. 5
Durable Goods / Key Areas – USA
Source - https://www.census.gov/economic-indicators/index.php

6. 6
Durable Goods / Key Areas – USA
Source - https://www.census.gov/economic-indicators/index.php

7. 7
2023 – Capital
Spending

8. 8
Business Investment Outlook / 2022
capspendind.pdf

9. 9
Business Investment Outlook / 2021
Source - https://www.kiplinger.com/economic-forecasts/business-spending

10. 10
Capital Investment

11. 11
Supply Chain and Analytics

12. 12
Capital Expenditure Planning

13. 13
Blog – Supply Chain
Many thanks to Deloitte, MHI, Thomasnet for posting this survey.
It was a close race between the top four technology areas respondents said they are increasing supply chain resiliency
investments in:
 Inventory and network optimization — 54%
 Cloud computing and storage — 54%
 Robotics and automation — 53%
 Sensors and automatic identification — 52%
For more information, please see the following link: https://www.linkedin.com/pulse/blog-need-resilience-amid-pandemic-
disruption-powering-paul-young/?published=t

14. 14
How to Build Resilient Supply Chain
• Blog – How to build a resilient Supply Chain using Data and AI
https://ibm.box.com/s/bqy9mr0ktlgi64sbf49o4rg5d9w0rqkn

15. 15
ESG Reporting
Blog - Accountant’s face challenges with ESG reporting -
Financial professionals are confronting some big obstacles when it comes to environmental, social and governance
reporting, according to a new survey, including competing and sometimes conflicting disclosure frameworks, reporting
methodologies and stakeholder demands.
The report, released Thursday by Financial Executives International’s Financial Education & Research Foundation, polled
53 chief accounting officers and controllers from some of the largest U.S. companies, and found that 53% of the
respondents indicated they had not yet started to integrate ESG reporting with their financial reporting, while 43% said
they had only just started to do so. Data is the biggest single challenge to ESG reporting, with questions related to
collection, collation, analysis and control among the biggest ESG-related data questions. The plethora of competing
standards and frameworks is also a big challenge, with 85% of companies using multiple ESG reporting frameworks.
Finance professionals reported they had a hard time hearing through all the noise and providing relevant, concise ESG
metrics in telling their organization’s ESG story.
Source - https://www.accountingtoday.com/news/accountants-face-challenges-with-esg-reporting
Templates: https://ibm.box.com/s/nsbds2s5v8znpwqzc03p9urykbat38w0
Presentation: https://ibm.box.com/s/vmyitcackqevvm1hcxv7wke6gudrpnce

16. 16
Infrastructure /Monitoring
Blog - 407 ETR and Mohawk College using drone technology to help workers with maintenance -
https://www.linkedin.com/posts/paul-young-055632b_407-etr-and-mohawk-college-using-drone-technology-activity-
7067833711341309952-sVPE?utm_source=share&utm_medium=member_desktop
Blog - 407 ETR and Mohawk College using drone technology to help workers with maintenance.
407 ETR is collaborating with Mohawk College’s Unmanned and Remote Sensing Innovation Centre (URSIC) to evaluate
safer and more efficient ways of conducting visual inspections of overhead structures. Currently, employees physically climb
overhead gantries to perform manual inspections while traffic passes underneath.
Source - https://www.canadianmanufacturing.com/manufacturing/407-etr-and-mohawk-college-using-drone-technology-to-
help-workers-with-maintenancee-291888/
Additional sources:
ESG - https://www.slideshare.net/paulyoungcga/introductory-to-esg-and-sustainability-reportingpptx-257524640
Close, consolidate, and reporting - https://www.slideshare.net/paulyoungcga/close-consolidate-and-reporting-cyclepptx-
256864692
Crisis and Risk Management - https://www.slideshare.net/paulyoungcga/how-to-better-management-future-variants-and-
diseases-through-better-crisis-and-risk-manatgement

17. 17
Vegetation and Geospatial
https://www.linkedin.com/posts/rwlord_river-flood-highest-since-2001-in-miss-valley-activity-
7062395985708085249-YI2M?utm_source=share&utm_medium=member_desktop
Leverage data and AI as part mitigating geopolitical risks and threats is becoming increasing important for
both private and public sectors. The ability to leverage geospatial data with business analytical tools like
Cognos Analytics and Planning Analtyics can lead to better risk mitigation as part of safeguarding assets.
Blog – Geospatial data with Planning Analytics - https://www.linkedin.com/posts/paul-young-
055632b_geospatial-data-with-planning-analytics-activity-7062420172178915328-
l43Y?utm_source=share&utm_medium=member_desktop

18. 18
Summary
• Capital spending continues to face many challenges
Blog – Durable Goods and Capital Spending Analysis – June 2023
Summary:
New orders for durable goods rose a strong 4.7% (8.9% y/y) in June, following a 2.0% (5.7%
y/y) monthly gain in May, (initially up 1.7% m/m). June represents a fourth consecutive monthly
gain. The Action Economics Forecast Survey had looked for a smaller monthly advance of 1.8%.
Shipments of durable goods rose 0.3% (3.8% y/y) in June, up three of the last four months and
following a 2.0% (3.6% y/y) rise in May (initially up 1.7% m/m).
Transportation orders made another significant contribution to the rise in overall orders in June.
They were up 12.1% m/m (26.0% y/y) after a 4.3% rise (18.1% y/y) in May (initially up 3.9%
m/m). A whopping 57.1% m/m gain in orders for aircraft and parts provided a major boost to
overall transportation orders, following a 12.5% rise in May. The June increase reflected a 69.4%
m/m jump in nondefense aircraft orders and a 5.5% m/m gain in defense aircraft orders. Orders
excluding transportation increased 0.6% m/m in May, after a 0.7% rise in May (revised up from
a 0.6% m/m gain).
Across other sectors, the June rise in orders reflected increases in major categories except for
defense orders. Both orders for computers and electronic products and for electrical equipment
posted monthly gains of 1.5%. Total defense orders contracted 17.1% in June, following a
decline of 12.7% m/m in May. Excluding those, the remaining orders rose a robust 6.2% m/m in
June, after a 3.2% rise in May.
Shipments of all manufactured goods edged up 0.2% m/m (-2.6% y/y) in June, following a 0.4%
m/m (-1.8% y/y) in May (initially reported as up 0.2% m/m). Shipments of durable goods rose
0.3% m/m in June, while shipments of nondurable goods edged up 0.1% m/m. Transportation
shipments rose a mere 0.2% m/m in June and excluding transportation, other shipments of
durable goods increased 0.3% m/m.
Capital goods orders contained in this report provide important information concerning business
spending on equipment. Orders for nondefense capital goods excluding aircraft (core capital
goods) increased 0.2% m/m (1.9% y/y) in June, following a downwardly revised 0.5% m/m rise
in May (initially up 0.7% m/m). Core capital goods shipments were barely changed in June
(+3.3% y/y) following a 0.3% rise in May (revised from up rose 0.2% m/m). These data leave
Q2 core capital shipments up an annualized 1.9%, down from 2.3% in Q1.
Source – https://www.haver
.com/articles/u-s-durable-goods-orders-surprised-again-on-the-upside-in-
june