US Durable Goods Orders Fall More than Expected

New orders for US manufactured durable goods fell 1.1 percent from a month earlier in September 2019, following an upwardly revised 0.3 percent gain in the previous month and compared with market expectations of a 0.8 percent decrease. Transportation equipment, led the decline after three consecutive monthly increases.
US Census Bureau | Stefanie Moya | stefanie.moya@tradingeconomics.com 10/24/2019 12:45:35 PM
Demand for transport equipment dropped 2.7 percent, after rising 0.2 percent in the prior month, mostly due to a slowdown in defense aircraft and parts (6.3 percent vs 52.7 percent) and as civilian aircraft continued to decline (-11.8 percent vs -17.2 percent). Also, orders went down for fabricated metal products (-1.5 percent vs 1.1 percent); computers and electronic products (-0.9 percent vs -0.4 percent); and motor vehicles and parts (-1.6 percent, the same as in August). In addition, demand of primary metals increased 0.3 percent, slowing from a 2.1 percent gain in August. On the other hand, orders rose for machinery (0.2 percent vs -0.3 percent) and electrical equipment, appliances, and components (0.9 percent vs -1.8 percent).

Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, went down  0.5 percent, after falling 0.6 percent in August.

Excluding transportation, new orders decreased 0.3 percent (vs 0.3 percent in August). Excluding defense, new orders fell 1.2 percent (vs -0.9 percent in August).

Shipments of manufactured durable goods in September, down three consecutive months, decreased $1.0 billion or 0.4 percent to $252.5 billion. This followed a 0.1 percent August decrease.  Transportation equipment, also down three consecutive months, drove the decrease, $1.0 billion or 1.2 percent to $84.6 billion. Unfilled orders for manufactured durable goods in September, down following two consecutive monthly increases, decreased less than $0.1 billion or virtually unchanged to $1,163.5 billion.  This followed a 0.2 percent August increase. Fabricated metal products, down following three consecutive monthly increases, drove the decrease, $0.1 billion or 0.1 percent to $87.0 billion.

Inventories of manufactured durable goods in September, up fourteen of the last fifteen months, increased $2.1 billion or 0.5 percent to $430.3 billion. This followed a 0.2 percent August increase. Transportation equipment, also up fourteen of the last fifteen months, led the increase, $2.1 billion or 1.4 percent to $145.3 billion. 

Nondefense new orders for capital goods in September decreased $2.1 billion or 2.8 percent to $71.6 billion. Shipments decreased $0.1 billion or 0.1 percent to $74.2 billion. Unfilled orders decreased $2.6 billion or 0.4 percent to $690.4 billion. Inventories increased $1.8 billion or 0.9 percent to $194.5 billion. Defense new orders for capital goods in September decreased $0.6 billion or 4.5 percent to $13.2 billion. Shipments increased $0.2 billion or 1.4 percent to $12.8 billion. Unfilled orders increased $0.4 billion or 0.2 percent to $157.5 billion. Inventories increased $0.2 billion or 1.0 percent to $24.0 billion.


US Durable Goods Orders Fall More than Expected