US Durable Goods Orders Fall the Most in 6 Months

New orders for US manufactured durable goods slumped 3.7 percent month-over-month in January of 2018, following a downwardly revised 2.6 percent rise in December and much worse than market expectations of a 2 percent drop. It is the biggest decline in six months, mainly due to a 10 percent plunge in orders for transport equipment. Orders for non-defense capital goods excluding aircraft, a proxy for business spending plans, dropped 0.2 percent after declining 0.6 percent in December.
US Census Bureau Joana Taborda | joana.taborda@tradingeconomics.com 2/27/2018 1:36:49 PM
Excluding transportation, new orders decreased 0.3 percent. Excluding defense, new orders decreased 2.7 percent. Transportation equipment, also down following two consecutive monthly increases, led the decrease, $8.6 billion or 10.0 percent to $77.7 billion. 

Shipments of manufactured durable goods in January, up eight of the last nine months, increased $0.6 billion or 0.2 percent to $247.0 billion. This followed a 0.5 percent December increase. Transportation equipment, up two of the last three months, led the increase, $0.4 billion or 0.5 percent to $81.3 billion. 

Unfilled orders for manufactured durable goods in January, down following four consecutive monthly increases, decreased $3.1 billion or 0.3 percent to $1,140.9 billion. This followed a 0.6 percent December increase. Transportation equipment, down three of the last four months, drove the decrease, $3.6 billion or 0.5 percent to $771.8 billion. 

Inventories of manufactured durable goods in January, up eighteen of the last nineteen months, increased $1.3 billion or 0.3 percent to $408.5 billion. This followed a 0.5 percent December increase. Transportation equipment, up two consecutive months, led the increase, $0.7 billion or 0.5 percent to $131.9 billion.

Nondefense new orders for capital goods in January decreased $1.2 billion or 1.5 percent to $73.6 billion. Shipments increased less than $0.1 billion or virtually unchanged to $74.4 billion. Unfilled orders decreased $0.7 billion or 0.1 percent to $706.1 billion. Inventories increased $1.0 billion or 0.5 percent to $181.9 billion. Defense new orders for capital goods in January decreased $3.3 billion or 26.3 percent to $9.2 billion. Shipments increased $0.4 billion or 3.2 percent to $11.5 billion. Unfilled orders decreased $2.4 billion or 1.6 percent to $141.0 billion. Inventories decreased $0.2 billion or 0.7 percent to $23.2 billion.

US Durable Goods Orders Fall the Most in 6 Months