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.

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


US Census Bureau Joana Taborda | joana.taborda@tradingeconomics.com
2/27/2018 1:36:49 PM