US Durable Goods Orders Jump 4.5%

New orders for US manufactured durable goods surged 4.5 percent from a month earlier in August 2018, following a downwardly revised 1.2 percent drop in July and easily beating market expectations of a 2 percent growth. Transportation equipment drove the increase as volatile demand for civilian aircraft rose.
US Census Bureau | Joana Ferreira | joana.ferreira@tradingeconomics.com 9/27/2018 12:46:56 PM
Demand for transport equipment climbed 13 percent in August (vs -3.7 percent in July), led by nondefense aircraft and parts (69.1 percent vs -29.1 percent) and defense aircraft and parts (17 percent vs -32.3 percent) while orders for motor vehicles and parts dropped (-1 percent vs 3.6 percent). Demand also rose for electrical equipment, appliances, and components (0.6 percent vs -0.2 percent); primary metals (0.9 percent vs unchanged); and machinery (0.1 percent vs 0.4 percent). Orders for fabricated metal products were unchanged (vs 0.3 percent in July) while those for computers and electronic products fell (-0.5 percent vs 0.8 percent).

Excluding transportation, new orders edged up 0.1 percent (vs 0.2 percent in July). Excluding defense, new orders surged 2.6 percent (vs -0.6 percent in July).

Shipments of manufactured durable goods in August, up three of the last four months, increased $1.9 billion or 0.8 percent to $253.1 billion. This followed a 0.1 percent July decrease. Transportation equipment, up two of the last three months, led the increase, $1.6 billion or 1.9 percent to $86.0 billion. 

Unfilled orders for manufactured durable goods in August, up nine of the last ten months, increased $10.4 billion or 0.9 percent to $1,176.5 billion. This followed a 0.1 percent July increase. Transportation equipment, up six of the last seven months, led the increase, $9.3 billion or 1.2 percent to $811.0 billion. 

Inventories of manufactured durable goods in August, down following nineteen consecutive monthly increases, decreased $1.4 billion or 0.4 percent to $407.0 billion. This followed a 1.2 percent July increase. Transportation equipment, down two of the last three months, drove the decrease, $1.8 billion or 1.4 percent to $129.3 billion.

Nondefense new orders for capital goods in August increased $5.7 billion or 7.6 percent to $81.3 billion. Shipments increased $2.2 billion or 3.0 percent to $77.3 billion. Unfilled orders increased $3.9 billion or 0.5 percent to $718.6 billion. Inventories decreased $1.3 billion or 0.8 percent to $177.4 billion. Defense new orders for capital goods in August increased $4.9 billion or 44.4 percent to $16.0 billion. Shipments increased $0.1 billion or 1.2 percent to $11.6 billion. Unfilled orders increased $4.4 billion or 3.0 percent to $151.5 billion. Inventories decreased $0.2 billion or 0.8 percent to $22.6 billion. 

US Durable Goods Orders Jump 4.5%