US Durable Goods Orders Unexpectedly Rise

New orders for US manufactured durable goods rose 0.2 percent from a month earlier in August 2019, following an upwardly revised 2 percent gain in the previous month and beating market expectations of a 1 percent decline. Fabricated metal products, up four of the last five months, led the increase.
US Census Bureau | Stefanie Moya | stefanie.moya@tradingeconomics.com 9/27/2019 12:58:57 PM
Demand for fabricated metal products advanced 1.3 percent, rebounding from a 0.8 percent fall in the prior month. Also, orders increased for machinery (0.6 percent vs -1.1 percent) and primary metals (1.5 percent vs -1.1 percent). Meanwhile, demand for transport equipment fell 0.4 percent, after jumping 7.2 percent in the prior month, mostly due to a slowdown in defense aircraft and parts (30.3 percent vs 33.0 percent) and a decline in civilian aircraft (-17.1 percent vs 52.2 percent) and motor vehicles and parts (-0.8 percent vs 0.1 percent) orders. Additionally, demand dropped for electrical equipment, appliances, and components (-1.3 percent vs 0.1 percent) and computers and electronic products (-0.3 percent vs a flat reading).

Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, went down 0.2 percent, after a flat reading in July.

Excluding transportation, new orders increased 0.5 percent (vs -0.5 percent in July). Excluding defense, new orders decreased 0.6 percent (vs 1.3 percent in July).

Shipments of manufactured durable goods in August, up three of the last four months, increased $0.3 billion or 0.1 percent to $254.2 billion.  This followed a 1.2 percent July decrease. Machinery, up four of the last five months, drove the increase, $0.5 billion or 1.6 percent to $33.4 billion Unfilled orders for manufactured durable goods in August, up two consecutive months, increased $0.7 billion or 0.1 percent to $1,162.3 billion. This followed a 0.1 percent July increase.  Fabricated metal products, up three consecutive months, led the increase, $0.6 billion or 0.7 percent to $87.2 billion.

Inventories of manufactured durable goods in August, up thirteen of the last fourteen months, increased $1.3 billion or 0.3 percent to $428.6 billion. This followed a 0.4 percent July increase. Transportation equipment, also up thirteen of the last fourteen months, drove the increase, $1.7 billion or 1.2 percent to $143.2 billion.   

Nondefense new orders for capital goods in August decreased $1.6 billion or 2.1 percent to $74.4 billion. Shipments increased $0.2 billion or 0.2 percent to $74.7 billion. Unfilled orders decreased $0.4 billion or 0.1 percent to $693.3 billion. Inventories increased $1.8 billion or 0.9 percent to $192.7 billion. Defense new orders for capital goods in August increased $1.8 billion or 15.4 percent to $13.7 billion. Shipments increased $0.1 billion or 0.5 percent to $12.7 billion. Unfilled orders increased $1.0 billion or 0.7 percent to $157.0 billion. Inventories decreased $0.3 billion or 1.2 percent to $23.7 billion.

US Durable Goods Orders Unexpectedly Rise